Canadian merger and acquisition activity rebounded a bit in the first half, according to the research firm Mergermarket, with RBC Capital Markets topping the industry league tables.

The firm reports that after a very slow fourth quarter last year, Canadian M&A has fared relatively well in the first half of this year. Total deal value is only down 7.3% from the same period last year at $42.6 billion, although deal volumes are down by approximately 41.7% over the same period.

At $27.7 billion, domestic M&A is up a little from the second half of 2008, it reports, with most of the total accounted for by the $18.4 billion combination of Calgary’s Suncor Energy and Petro-Canada. However, cross-border activity has suffered through the downturn.

The Canadian market continues to be dominated by energy sector deals, the firm notes, with six of the first half’s 10 largest deals coming in that space. The sector represents 87.1% of deal values and 41.4% of deal volumes so far this year, it says.

“With the price of crude oil slowly creeping up, M&A activity is expected to rise,” it suggests. “Oil sands companies that have put a hold on development are now slowly starting to ramp up construction. These same companies might become more receptive to joint ventures involving stake sales as oil-weighted companies turn the focus back on drilling programs. If crude prices continue to go up, it is expected that junior players that have difficulty raising capital will also look to sell assets.”

Additionally, it notes that as gas prices are not expected to recover as quickly as crude oil, natural gas-weighted companies might start feeling pressure to divest assets or sell.

The firm also reports that RBC Capital Markets led both the value and volume tables overall and for mid-market deals during the first half of the year. The firm worked on 15 deals with a value of $38.7 billion, it says. CIBC World Markets was in second spot for overall M&A value, just ahead of Morgan Stanley. In terms of deal volume, BMO Capital Markets ranked second with 12 deals, just ahead of CIBC.

“The most surprising aspect of the financial advisor tables at this stage is the omission of last years top ranking firm, Bank of America Merrill Lynch. The company has only worked on two deals worth a mere $370 million, falling short of a top 20 ranking overall,” it notes.