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Canadian firms set for buying spree: Report

The high loonie, increasing demand for goods in Asia and companies looking to spend their idle cash will lead to more mergers and takeovers involving Canadian businesses next year after a slight dip in 2010, according to business consultants and auditing firm KPMG.

The high loonie, increasing demand for goods in Asia and companies looking to spend their idle cash will lead to more mergers and takeovers involving Canadian businesses next year after a slight dip in 2010, according to business consultants and auditing firm KPMG.

KPMG says companies will be looking to emerging markets as a way to expand their boundaries and invest money sitting in bank accounts.

Adding the high dollar and favourable exchange rates to the mix makes it more affordable for Canadian companies to buy foreign ones, KPMG said.

“I think there’s going to be opportunities in eastern Europe and the rest of Europe for Canadian companies ... with huge growth in those emerging econ­omies like China and India,” Peter Hatges, presi­dent of KPMG Corporate Finance, added.

KPMG estimates a little more than 1,800 transactions involving Canadian companies will be completed this year with a total value of between $114 billion US and $117 billion US.

 
 
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