TORONTO: More Canadian companies intend to pursue acquisitions, bucking the global trend, according to a survey by global advisory firm Ernst & Young.

Of the Canadian executives responding to the Global Capital Confidence Barometer survey, 48% are looking at pursuing acquisitions, up from 32% from April 2011 and ahead of both the global results (31%) and the US (34%), both of which dropped from October 2011 results.

Confidence in the Canadian economy has more than doubled, says Tony Ianni, a partner in Ernst & Youngs Transaction Advisory Services practice. While there is still volatility and corporate executives are still cautious, their outlook is more positive than many global respondents who operate in a more challenging environment.

Of the Canadian participants surveyed:

• 31% of Canadian businesses are looking to divest, up from 23% in October 2011.

• 80% believe the number of deal opportunities is increasing, and more than three-quarters believe the likelihood of closing deals is greater than it was six months ago.

• 75% view credit availability as stable or improving.

• 72% believe the Eurozone crisis has affected their businesses.

The Canadian’s top investment destinations include the US, China, Hong Kong, Singapore and India and favoured acquisitions are in financial services, life sciences (including healthcare), consumer products, oil and gas, and technology.

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