Canadian dealmaking seen rebounding in 2024, led by energy, mining

Canadian energy, power and mining companies are expected to lead a rebound in dealmaking this year helped by lower interest rates, following a slump in overall mergers and acquisitions in 2023 to the lowest since the outbreak of COVID-19, bankers said. Money markets are betting that the Bank of Canada (BoC), which raised interest rates to a 22-year high of 5% in 2023, could start cutting borrowing costs as early as April. "This general consensus about how 2024 is going to be a more normalized environment is making its way into the boardroom," said Sarfraz Visram, head of Canadian and international mergers and acquisitions (M&A) at the Bank of Montreal, adding that his team was having extensive conversations with clients.