Lexpert Magazine

Jan/Feb 2017

Lexpert magazine features articles and columns on developments in legal practice management, deals and lawsuits of interest in Canada, the law and business issues of interest to legal professionals and businesses that purchase legal services.

Issue link: http://digital.carswellmedia.com/i/780150

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LEXPERT MAGAZINE | JANUARY/FEBRUARY 2017 29 10 Top WITH LOW OIL PRICES AND AN UNFAVOURABLE EXCHANGE RATE, FORECASTERS MAY HAVE PREDICTED A DISCOURAGING ENVIRONMENT FOR OUTBOUND TRANSACTIONS. LAST YEAR'S TOP DEALS DEFIED THE ODDS BY JEAN CUMMING OVERALL IN 2016, there were several outbound deals, including Fortis's acquisition of Michigan-based ITC Holdings and Enbridge's acquisition of Spectra Energy. Lawyers told us that their "Canadian Champion" clients, be they Canadian-owned or otherwise, were faced with a lack of domestic targets. So in order to take their businesses to the next level, they had to move out or expand their footprint in the US and other countries. One might have thought the unfavourable Canada/US exchange rate would have been more inhibiting. It was a "bump" certainly on at least one deal, but lawyers told Lexpert that many of their acquiring clients already had operations in the US and so had come to terms with the exchange-rate delta. And Canadian investors seemed to back them up, being fairly confident about the benefits of consolidation. e outbound is not, of course, extant. In industrial sectors where Canadian ownership is mandated, consolidation took place between companies in Canada. is counter-trend is best exemplified in Corus's purchase of Shaw Media, where the majority owner of both companies was the same Canadian family. In both scenarios, lawyers we spoke to noticed the leadership at the top that drove their clients' deal-making success. Indeed, a strong leadership team and ensuing corporate culture made both targets and acquirers attractive. is was exemplified in our Deal of the Year, the acquisition of ITC Holdings by Fortis. Deals COVER STORY OF 2016

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