Goldman led Canadian pack in value of M&A deals in 2014

By Euan Rocha and John Tilak

TORONTO, Jan 8 (Reuters) - Goldman Sachs Group Inc led investment banks advising on mergers and acquisitions inCanada in 2014, a year in which big international oil and gasdeals were hot before oil prices turned cold.

Before the fourth-quarter collapse of oil prices, CanadianM&A activity last year was dominated by big energy-sector dealssuch as Spanish oil giant Repsol SA's $8.3 billion bidfor Talisman Energy and Encana Corp's $5.9billion buyout of U.S. rival Athlon.

According to data released by Thomson Reuters on Thursday,the total value of M&A deals in Canada in 2014 jumped to $203.1billion from $147.2 billion in 2013, with Goldman and itsinternational peers enjoying a banner year. Goldman advised ondeals worth $56 billion, including Talisman in the Repsol bid.

"Canada has been dominated by cross-border activity thisyear," said David Rawlings, head of JPMorgan's Canadianoperations. "We feel like the M&A environment - for energy andother sectors - will remain constructive in 2015, although thedrivers of the activity may change."

The top six spots on the Canadian M&A league tables werecaptured by Goldman, Royal Bank of Canada, JPMorganChase & Co, Barclays Plc, Morgan Stanley and Deutsche Bank AG.

Bankers at both the large international and Canadian banksremain optimistic about 2015, despite weak resource prices.

"I think 2015 will be a solid year and it may surprise onthe upside," said Bruce Rothney, head of Barclays Canada.

Despite the few mega deals in which global banks played asignificant role, Canadian banks RBC, Bank of Montreal,Bank of Nova Scotia, Toronto-Dominion Bank andCIBC advised on the vast majority of transactions in2014.

Bankers expect an increase in M&A activity in mining, a bigsector within the domestic market, but one that has been hurt bya pullback in commodity prices over the last two years.

"We are constructive on the outlook for mining," said DanielBarclay, BMO's head of investment and corporate banking. "We arenot talking bull market, but we are way past the bottom."

The top law firms advising on M&A deals were Osler, Hoskin &Harcourt LLP, followed by Skadden and Blake, Cassels & Graydon.

"In terms of M&A activity, I do not think 2014 was anaberration. It was a departure point for more to come," saidEmmanuel Pressman, head of Osler's M&A group in Toronto. (Reporting by Euan Rocha and John Tilak; Editing by PeterGalloway)