Canada's Q1 2026 M&A Landscape

Canada’s M&A market entered 2026 with momentum from a strong 2025, though activity moderated in the first quarter amid heightened geopolitical uncertainty. Rather than signalling a broad retreat, the quarter was defined by a more selective approach to dealmaking: total deal value reached US$62.3 billion across 730 transactions, with the top 10 deals accounting for nearly 70% of that value. Buyers and sellers prioritized scale, quality and strategic alignment, concentrating activity in sectors viewed as nationally strategic-particularly energy, mining and infrastructure.

Mining continued to feature prominently, driven by elevated gold prices and sustained central bank demand, while infrastructure dealmaking gained momentum as regulatory frameworks evolved and nation-building initiatives took shape. As discussed in our quarterly review, these dynamics point to a Canadian M&A environment that is well positioned for strong activity as approval pathways clarify and investor confidence builds.

In this quarterly update, we examine:

• the industries leading Canadian M&A activity;
• the role of elevated commodity prices in driving mining transactions; and
• how evolving regulatory frameworks are setting the stage for increased activity later in 2026.

Following a robust 2025, Canadian M&A activity moderated in early 2026, measured both by deal value and transaction count. In Q1 2026, announced and completed Canadian M&A totalled US$62.3 billion across 730 transactions, compared with US$86.6 billion and 845 deals in Q4 2025. This pullback reflects, in part, a combination of macroeconomic pressures and heightened geopolitical uncertainty, leading many dealmakers to take a more measured and deliberate approach. Importantly, this pause appears more tactical than structural: Canada continues to be viewed as a stable and predictable market, positioning it favourably as buyers and sellers regain confidence. In this context, current conditions may ultimately support well‑timed and strategically sound M&A opportunities as clarity emerges.

A defining feature of the quarter was the concentration of value in larger transactions. Among deals where transaction values were publicly reported, the top 10 deals accounted for nearly 70% of total Canadian M&A deal value in Q1 2026, underscoring that conviction remains strong for strategically significant transactions. This concentration also suggests that well‑capitalised buyers continue to pursue high‑quality assets and are prepared to transact decisively despite near‑term uncertainty.

Deal activity in Q1 2026 was led by sectors benefiting from strong fundamentals and supportive policy frameworks in Canada. Energy ranked first by deal value at US$14.8 billion across 31 transactions, followed by mining at US$12.5 billion from 190 transactions—where activity was driven primarily by gold—and utilities at US$10.4 billion across 6 transactions.

The sector composition of the quarter’s largest transactions further highlights this concentration of value. The top 10 transactions included two in energy, three in mining and two in utilities. This pattern reflects sustained buying demand for industries viewed as strategic, resilient, and aligned with Canada’s resource base and infrastructure priorities, signalling continued confidence in long‑term value creation despite broader market uncertainty.

Mining: Selective Momentum Amid Softer Headline Activity

Mining emerged as a standout performer in Q1 2026, featuring prominently in larger transactions-led by gold-amid macroeconomic conditions that have created generational opportunities for the sector.

Gold prices reached historic highs in early 2026, surging above US$5,500 per ounce in January 2026 and ending Q1 2026 at US$4,554, up nearly 50% year-over-year and among the best-performing major asset classes over any meaningful trailing period. The drivers of this performance remain structural, not speculative: central banks have purchased more than 1,000 tonnes annually since 2022, while institutional equity portfolios remain predominantly under-exposed to major mining asset classes. Reflecting on this backdrop, leading institutions such as BMO Capital Markets have published bull-case scenarios targeting gold at US$8,650/oz and silver at US$220/oz by 2027.

For producers, organic growth remains structurally challenged. Many senior and mid-tier miners struggle to replace annual production, making acquisition the primary path to reserve growth. Since the beginning of 2025, nine takeovers of Canadian gold mining companies have exceeded US$1 billion in value, with gold accounting for 54% of mining mid-market activity in Canada over that period.

In this context, mining deal flow remains disciplined and thematically consistent. Elevated prices and strong producer balance sheets continue to drive consolidation and portfolio rationalisation. Copper and critical minerals are equally focal, with supply-demand imbalances and government-backed initiatives—including Canada's $2 billion Critical Minerals Sovereign Fund—reinforcing the deal imperative. Transaction structures are evolving accordingly: joint ventures, earn-ins, royalties and streaming arrangements are increasingly supplementing traditional cash-and-share deals to mitigate development and jurisdictional risk, while majors advance disposals of non-core assets to focus capital on primary commodities.

Cross-border interest remains healthy, particularly for Canadian issuers with tier-one assets and de-risked project infrastructure. Canadian inbound M&A deal value reached US$98.5 billion in 2025, approximately double the prior year. Deal structures are adjusting to prevailing conditions, with earn-outs and contingent consideration more frequently used to bridge valuation gaps, while enhanced Investment Canada Act scrutiny is extending transaction timelines, though it has not impeded well-prepared deals. Boards are sharpening diligence around tailings management, decarbonization pathways and long-dated infrastructure commitments that can materially affect life-of-mine economics. On the financing side, equity and convertible capital are being paired more frequently with streams, royalties and offtakes to match funding to project risk and timing.

Looking ahead, the pipeline points to continued activity led by gold and copper. Well-capitalised buyers are pursuing scale and quality, while juniors are leveraging strategic partnerships and a supportive policy environment to advance assets. In a sector defined by depleting reserves and commodity cycles that reward conviction, the conditions for continued mining M&A in Canada remain as compelling as they have been in at least a decade.

Infrastructure M&A: Policy Momentum and a Re‑Emerging Deal Pipeline

Global M&A value in travel, logistics and infrastructure rose by approximately 67% year-over-year to US$323 billion in 2025, indicating strong and growing investor confidence in the sector. In Q1 2026, infrastructure dealmaking was closely tied to evolving regulatory frameworks, with market participants focused heavily on the potential impact of the Major Projects Office. The federal government’s intended “fast-tracking” of the regulatory approval process for listed projects—and the proposed fast-tracking by the Alberta provincial government as well as other provincial initiatives and legislation across the nation aimed at streamlining project development, such as Ontario's Bill 5 and British Columbia's Infrastructure Projects Act—reflects growing recognition that Canada’s existing regulatory framework has constrained the development of major projects across the country, and that change is needed. While these challenges contributed to the deferral of certain major oil and gas projects during the quarter, they are also laying the groundwork for increased transaction activity as approval pathways become clearer and more predictable.

In light of these conditions, infrastructure M&A activity remains concentrated segments such as energy, transportation and mining‑adjacent assets. Many of these projects are large and capital-intensive, requiring substantial sources of investment to support development. Construction labour remains a constraint in Canada and represents one of the few labour growth sectors in the country.

Government priorities continue to influence deal flow themes. A renewed focus on economic diversification and supply-chain resilience is expected to drive significant investment in large-scale critical infrastructure projects across Canada, particularly in the power generation and transmission sector, data centres and mining. In addition, the federal government remains committed to advancing carbon capture, utilization and storage (CCUS) developments across Canada, recently launching a call for proposals under which companies can submit expressions of interest to support front-end engineering and design work for CCUS projects. This early-stage commitment may translate into partnership-driven M&A as projects advance toward commercialization.

Across provinces, Quebec stands out for its resilience and consistency in energy and infrastructure M&A, with a second multi-billion dollar privatization of a Quebec-based renewable energy developer in less than a year. Activity in the province mirrors the broader national trend, as investors continue to deploy capital into clean energy, decarbonization, digital infrastructure and large-scale nation-building projects. Activity has been supported by government initiatives accelerating infrastructure spending and by rising demand for power-intensive assets, which has driven sectors such as renewables, grid modernization and storage. Quebec continues to attract pension funds and global infrastructure investors, in part due to its predictable regulatory environment and Hydro-Québec’s central role in the ecosystem.

Overall, the outlook for infrastructure M&A in Canada is strengthening. As nation‑building initiatives advance, approval processes evolve and global momentum in infrastructure investment continues, infrastructure assets are expected to feature more prominently in Canadian M&A activity through the remainder of 2026 and beyond, supported by favourable policy signals, accessible capital and growing investor confidence.

Looking Ahead

Canadian M&A activity appears well-positioned as uncertainty begins to ease and confidence gradually returns. Nation‑building initiatives, regulatory evolution and sustained access to long‑term capital are expected to support increased dealmaking, particularly in energy, mining, infrastructure and other strategically aligned sectors. While discipline around valuation and structure is likely to remain, well‑capitalized buyers are increasingly focused on scale, quality and long‑duration assets. In this environment, Canada’s stability and policy support may create attractive conditions for timely and well‑executed transactions through the remainder of 2026.

Bennett Jones M&A Practice

Bennett Jones' Mergers & Acquisitions practice spans all industries—particularly those that drive the Canadian economy. To discuss the developments and opportunities shaping the M&A landscape, please contact one of the authors.

*All numbers are according to S&P Global Market Intelligence in US dollars for announced or completed deals—where a Canadian company is the acquirer, target or seller—as of March 31, 2026.