Canadian M&A volume hits multidecade low in Q2 as war and trade risks freeze dealmaking

Corporate borrowing costs and geopolitical uncertainty have pushed Canadian merger activity to its lowest level in decades, signaling a prolonged freeze in capital markets.

By Handelsavisen Newsroom · Automated 2026-07-07 22:06 UTC · 1 min read

Merger and acquisition activity involving Canadian companies collapsed to a multidecade low in the second quarter, with just 460 transactions announced.

The sharp contraction reflects a perfect storm of soaring corporate borrowing costs and deepening uncertainty stemming from the U.S.-Iran war and broader trade tensions.

The data, compiled by Data & Analytics and reported by The Globe and Mail, underscores how geopolitical shocks are rapidly translating into corporate caution.

The data, compiled by Data & Analytics and reported by The Globe and Mail, underscores how geopolitical shocks are rapidly translating into corporate caution.

With financing costs elevated and strategic outlooks clouded by conflict, buyers and sellers alike are hitting pause on major structural changes.

This freeze in dealmaking is a leading indicator of risk aversion spreading through the Canadian corporate sector.

The slowdown aligns with broader macroeconomic headwinds.