CANADA Trends and Developments Contributed by: Mahdi Shams, Kevin Sorochan, Joshua Krane and Scott Masson, MLT Aikins
such as design-bid-build, construction management, EPCM, public-private partnerships and collaborative delivery models (IPD and Alliance).
MLT Aikins LLP Suite 2600 1066 West Hastings Street Vancouver BC V6E 3X1 Canada Tel: +1 604 682 7737 Fax: +1 604 682 7131 Email: mshams@mltaikins.com Web: www.mltaikins.com
Introduction The Canadian political and economic environment in 2025 is defined by geopolitical instability, shifting trade alliances and tighter regulatory oversight. Inter- est rates remain elevated, which raises the cost of capital, narrows debt capacity and places a premium on stable cash flows. Existing and proposed US tariffs on Canadian imports have pushed some Canadian buyers to pursue defensive acquisitions in the United States to localise production and reduce tariff expo- sure while other entities with Canadian operations have sought to alter their logistics chains to minimise the impacts of tariffs and the associated uncertainties. Shifting trade alliances are prompting the federal gov- ernment to recalibrate economic policy and to channel public capital toward projects of national importance. Against this backdrop, M&A activity in Canada’s energy and infrastructure sectors continues to evolve in both form and focus. Parties are cautious in the face of new compliance expectations and valuation gaps, yet inventive as the government creates various opportunities to keep deals moving. Legislative Changes Regulatory settings now shape outcomes in Cana- dian energy and infrastructure M&A as much as price and strategy. The same forces highlighted above have
also influenced changes to government policy in this area. The federal response has two important parts: the application of more assertive oversight pursuant to competition and national security reviews, and the creation of new pathways for nationally signifi- cant projects. The result is a more structured process that rewards early planning, well-structured files and credible engagement with Indigenous rights holders. Transactions that ignore these realities may face long- er reviews, conditional approvals and higher execution risk. Competition Act Changes to Canada’s Competition Act have conferred greater authority to the Competition Bureau and the Competition Tribunal to review and block mergers. Among the notable changes, the law now sets a rebut- table presumption that shifts the burden on merging parties if the Herfindahl-Hirschman Index (HHI) is likely to rise by more than 100 and either the combined firm’s share would exceed 30% or the post-merger HHI would be at least 1,800. As a result, the Compe- tition Bureau and the merging parties are spending more time defining markets and measuring market shares. The Bureau can also obtain automatic injunctions to block closing when they file an application with
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