Canadian M&A activity hit a record high in Q3 2025, driven by lower rates and stronger U.S. demand, with deal value surging to US$48.6 billion.

Canadian M&A activity surged in Q3 2025, reaching US$48.6 billion—up from 2024—driven by a September rate cut to 2.50% and stronger U.S. rates. Deal value hit a quarterly high of US$60 billion in September, with global M&A volume up 40% year-over-year. Despite fewer deals, year-to-date value surpassed 2024’s total by US$125.2 billion. Buyers are pushing for lower prices and risk reduction, increasing use of earnouts—now in 22% of non-life sciences deals. EBITDA-based milestones are common. Corporate results show mixed performance, with Teck Resources and Prairie Sky Royalty reporting gains, while West Fraser Timber posted a wider loss. Upcoming data includes Canada’s September CPI and U.S. inflation and jobs reports.