Fertilizer giants Potash Corp. of Saskatchewan Inc. and Agrium Inc. left the door ever so slightly open to a competing offer for their companies after they were forced Tuesday to reveal that they are working on a multibillion-dollar merger. Rival resource companies are duty-bound to see whether they can squeeze through that crack, egged on by bankers anxious to play a role in the biggest commodity deal in years.
As the latest converts to the logic that bigger is better when it comes to commodities, Potash and Agrium are talking about a "merger of equals" that would create an entity worth more than $35-billion.
That approach dictates that neither company's shareholders receive a takeover premium, and there's no cash – only an exchange of shares.
If the two companies reach a deal, they will pitch investors on the long-term benefits of their union, such as cutting costs and increasing pricing clout with farmers. Story
Variation in bank mortgage growth reveals different views on housing
Canada's biggest banks have been reporting very different rates of growth in their mortgage books, raising questions about whether they are changing their approach to lending amid widespread concerns about housing markets in Vancouver and Toronto.
Among the five banks that reported fiscal third-quarter results over the past two weeks, Bank of Nova Scotia showed the weakest year-over-year growth in the value of its residential mortgages, at just 2.7 per cent. At the other end of the spectrum, Canadian Imperial Bank of Commerce showed the strongest growth at 9.5 per cent.
The other three banks that have reported results were in the middle. Toronto-Dominion Bank's mortgage book expanded 4.7 per cent over last year, Bank of Montreal's expanded 5.2 per cent and Royal Bank of Canada's grew 6.4 per cent.
The banks do not break down their mortgage figures by urban market, so the numbers provide a national reading rather than a local snapshot. Nonetheless, the relatively wide range of growth has left executives facing questions about whether they are chasing market share or prudently surrendering it. Story
Scotiabank's capital markets results could show 'turnaround'
Surging investment banking revenue fuelled earnings growth in the capital markets arm of Bank of Nova Scotia in its latest quarter, with one analyst maintaining the results could be evidence of a turnaround.
The strong capital markets results at Scotiabank mirror those of the other four big banks that reported last week. The trading wings have stood out, with Britain's Brexit vote to leave the European Union a big factor in boosting client activity during the quarter.
Profit in Scotiabank's global banking and markets division, which includes capital markets, rose 12 per cent to $421-million for the quarter that ended on July 31. Underwriting and advisory revenue jumped to $202-million from $113-million in the same period last year, an increase of 79 per cent, thanks to a number of big deals. Story
DAILY DEALS
Potash Corp. of Saskatchewan Inc. and Agrium Inc. said that they are in preliminary talks to merge, as the two Canadian companies grapple with weak fertilizer prices and a glut of potash in the market. Story
A proposal to take satellite radio provider Sirius XM Canada Holdings Inc. private has won shareholder approval, despite months of vocal opposition from dissident investors. Story
The owners of West Texas oil producer Jagged Peak Energy LLC are exploring a sale of the company amid a land rush in the region where the company drills. Story
ON THE MOVE
Barrick Gold Corp. says former vice-president Mark Hill is returning to the company as chief investment officer, a new position. Story
Bee Vectoring Technologies International Inc., the Canadian company that hopes to use bees as a method of delivering crop protection, has recruited a new chief executive officer. Story
IN CASE YOU MISSED IT
Andrew Willis on activist investors in Canada's boardrooms. Story
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