One-third of Canadian business leaders plan to pursue major acquisitions over the next 18 months, driven by the federal government’s nation-building agenda and improving economic conditions, according to new research from KPMG Canada.
The survey of 252 business leaders across 14 sectors found that 33% of respondents intend to make significant acquisitions to capitalize on growth opportunities. Among private or private equity-backed companies, that figure rises to 36%.
“The government’s nation-building agenda will be a catalyst for M&A activity in 2026, especially in the private mid-market, where deal appetite returned in the latter half of 2025 after the shock of the US trade war wore off,” said Marco Tomassetti, president of KPMG Corporate Finance Inc. Canada.
The federal government’s nation-building strategy includes $115.2 billion in infrastructure spending over five years, with $54 billion allocated for core public assets, including transit and AI-enabled digital infrastructure. The government projects that these investments will generate more than $1 trillion in total private-sector investment.
Tomassetti said this wave of public and private investment will drive merger and acquisition activity across infrastructure, energy, critical minerals, defence, and housing sectors, as investors pursue scale and capabilities in growth areas.
He added that accelerating investment in AI-enabled digital infrastructure, including data centres, cloud capacity, and supporting power and connectivity assets, will also generate related dealmaking.
“Companies operating in construction and engineering, building materials and logistics, oil and gas services, advanced manufacturing and robotics, and business services will see consolidation this year as firms in these sectors seek capabilities and capacity expansion to service demand,” Tomassetti said.
Neil Blair, partner and national leader of KPMG Canada’s Deal Advisory practice, said 2026 presents favourable conditions for domestic dealmaking amid momentum toward making Canada more competitive and self-sufficient.
“Canada’s economic agenda is creating a pipeline of opportunity for domestic dealmakers that demands scale and sophistication,” Blair said. “Investments in infrastructure, energy, critical minerals, and business services will create a growth environment where bigger companies will be needed to take on complex projects.”
Tomassetti noted that stable interest rates will keep capital affordable and accessible for financing deals. He said higher investor confidence, supported by stabilized and improving margins in many sectors, combined with the acceleration of wealth transfers, will mobilize more strategic and financial buyers in 2026.
The KPMG survey was conducted by Angus Reid Group between Nov. 5–14, 2025, among decision-makers at Canadian firms with annual gross revenue between $50 million and $1 billion or more.
