SkyLaw's Chambers Guide: M&A in Canada 2025

SkyLaw is the exclusive author of annual guides to Canadian M&A for Chambers and Partners, a highly respected global legal platform.


1. Trends
5

1.1 M&A Market
5

1.2 Key Trends
5

1.3 Key Industries
7

2. Overview of Regulatory Field
8

2.1 Acquiring a Company
8

2.2 Primary Regulators
8

2.3 Restrictions on Foreign Investments
9

2.4 Antitrust Regulations
10

2.5 Labour Law Regulations
11

2.6 National Security Review
11

3. Recent Legal Developments
11

3.1 Significant Court Decisions or Legal Developments
11

3.2 Significant Changes to Takeover Law
12

4. Stakebuilding
13

4.1 Principal Stakebuilding Strategies
13

4.2 Material Shareholding Disclosure Threshold
13

4.3 Hurdles to Stakebuilding
14

4.4 Dealings in Derivatives
15

4.5 Filing/Reporting Obligations
15

4.6 Transparency
15

5. Negotiation Phase
15

5.1 Requirement to Disclose a Deal
15

5.2 Market Practice on Timing
15

5.3 Scope of Due Diligence
15

5.4 Standstills or Exclusivity
16

5.5 Definitive Agreements
16

6. Structuring
17

6.1 Length of Process for Acquisition/Sale
17

6.2 Mandatory Offer Threshold
17

6.3 Consideration
17

6.4 Common Conditions for a Takeover Offer
18

6.5 Minimum Acceptance Conditions
18

6.6 Requirement to Obtain Financing
19

6.7 Types of Deal Security Measures
19

6.8 Additional Governance Rights
20

6.9 Voting by Proxy
20

6.10 Squeeze-Out Mechanisms
20

6.11 Irrevocable Commitments
21

7. Disclosure
21

7.1 Making a Bid Public
21

7.2 Type of Disclosure Required
21

7.3 Producing Financial Statements
21

7.4 Transaction Documents
22

8. Duties of Directors
22

8.1 Principal Directors’ Duties
22

8.2 Special or Ad Hoc Committees
22

8.3 Business Judgement Rule
23

8.4 Independent Outside Advice
23

8.5 Conflicts of Interest
23

9. Defensive Measures
24

9.1 Hostile Tender Offers
24

9.2 Directors’ Use of Defensive Measures
24

9.3 Common Defensive Measures
24

9.4 Directors’ Duties
25

9.5 Directors’ Ability to “Just Say No”
25

10. Litigation
25

10.1 Frequency of Litigation
25

10.2 Stage of Deal
25

10.3 “Broken-Deal” Disputes
25

11. Activism
25

11.1 Shareholder Activism
25

11.2 Aims of Activists
26

11.3 Interference With Completion
26

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