"Globalization has affected the way companies operate in a number of ways. Over the years, enterprises have increasingly expanded beyond their domestic markets to participate in the global marketplace. In so doing, companies can choose, for example, to export, establish new operations or acquire existing companies.
Activity in cross-border mergers and acquisitions in recent years involving Canadian companies was relatively intense in terms of both numbers and values.
Canadian firms acquired foreign companies at a faster pace than foreign firms were acquiring companies in Canada.
Between 1997 and 2002, Canadian firms acquired 447 foreign companies, transactions which are called “outward”, while foreign companies acquired 345 Canadian companies, so-called “inward” transactions.
Europe edged out the United States as the largest acquirer of Canadian companies during the six-year period. This slight edge for Europe was due primarily to the same extremely large acquisition in 2000. In fact, in all years other than 2000, the United States invested significantly more through acquisitions in Canada than did Europe. The United States was the primary destination for acquisitions, accounting for over two-thirds of all outward mergers and acquisitions. Canada was a net acquirer of U.S. companies over the six-year period."
