Truck News

In the March issue of Truck News, look for a report on how a rapidly depreciating Loonie is impacting various aspects of trucking. In the article, I explored how the Loonie’s descent affects: drivers and owner/operators; carrier revenue; Canadian manufacturing and exporting activity; new truck prices; and mergers and acquisitions activity. For that last one, I called upon Mike McCarron, mergers and acquisitions with Wheels Group. Here’s what he had to say…

“It puts a premium on Canadian companies that Americans are looking to buy and discounts American companies Canadians are looking to buy,” Mike said. “What’s not so obvious, however, is that Americans are already very skeptical of doing business in a ‘foreign’ country. They are far more benign and uninformed about Canada than we are about America. The sinking dollar provides another risk or uncertainty that I think will make American companies sitting on the fence think twice about buying a Canadian company. It’s an additional element of risk that they don’t understand and cannot control. What happens to your deal if the Canadian Loonie drops to 85 cents US? I think the sharp decline exasperates the situation. If dollar has been at 93 cents for years, there would be less uncertainty than one that is dropping rapidly with no end in sight and no real hard or fast explanation.”

Truck News

Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry.

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