The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Report on Business

Streetwise

News and analysis on Bay Street and the world of finance
available exclusively to subscribers of Globe Unlimited

Entry archive:

Lundin family to buy Fission Uranium in $500-million deal

RACHELLE YOUNGLAI

Denison Mines Corp. has agreed to buy Fission Uranium Corp. in a $500-million deal that will give the Lundin family control over a large uranium discovery in the Athabasca Basin.

Denison, which is controlled by mining tycoon Lukas Lundin, is offering the equivalent of $1.25 for every Fission share. Mr. Lundin will serve as chair of the combined company, and Fission’s top two executives, chief executive officer Dev Randhawa and chief operating officer Ross McElroy, will remain in the same positions at the new Denison.

More »

Bay Street’s ‘blank-cheque companies’ should elicit caution

TIM KILADZE

Four months into Canada’s experiment with “blank-cheque companies,” the results seem wildly encouraging. With three deals already sold, more than half a billion dollars has been raised and a fourth issuer is now in the process of going public.

Yet, as good as this looks, no one knows how this story will play out. Raising money is one thing; delivering strong long-term stock market performance is another. That’s why Canadians ought to exercise caution before blindly investing in whichever deal comes next, no matter how lucrative the early track record.

More »

Veteran securities lawyer joins Norton Rose

JANET McFARLAND

Senior securities lawyer Linda Fuerst has jumped to Norton Rose Fulbright after over 20 years at law firm Lenczner Slaght Royce Smith Griffen LLP, saying she was drawn by the firm’s international scope.

Ms. Fuerst joined Lenczner Slaght in 1994, just 18 months after the new firm was founded, and has been a pillar of its securities law group ever since, representing numerous clients before the Ontario Securities Commission and other venues.

More »

Daily Deal Roundup: Inside the world’s largest insurance deal

Duncan Hood

Valued at $37-billion, it’s the biggest American insurance industry merger ever: Aetna and Humana are now one, and industry watchers say the merger could kick off even more consolidation in the American insurance sector. Meanwhile, here at home, the Caisse has partnered up with an Irish multinational to snap up IPL, a Quebec plastics producer that specializes in plastic tubs and other food packaging. (And yes, for those watching, the saga at Pacific Rubiales continues to drag on, with no end in sight.)

More »

Tough slog ahead for CIBC’s new Caribbean CEO

TIM KILADZE

Canadian Imperial Bank of Commerce’s troubled Caribbean arm is finally turning the corner following an extensive restructuring, but the appointment of a new chief executive officer is sending mixed signals about the bank’s plans for the unit.

A few weeks ago, the lender’s head of corporate banking Gary Brown was quietly appointed the next CEO of CIBC FirstCaribbean, based in Barbados. Mr. Brown will take over from departing head Rik Parkhill on January 1.

More »

Scotiabank profitable in Puerto Rico despite debt crisis

TIM KILADZE

Puerto Rico’s crippling debt load is sending the commonwealth into a financial tailspin, creating uncertainty for Bank of Nova Scotia.

Canada’s third-largest lender has operated in Puerto Rico for more than a century and, in 2010, the bank doubled down, buying R-G Premier Bank after it was taken into receivership by the U.S. Federal Deposit Insurance Corp. The deal provided Scotiabank with 29 extra branches and added 1,200 new employees, as well as $5.6-billion (U.S.) worth of assets.

More »

Daily Deal Roundup: RBC, BMO grab top spots in M&A adviser rankings

SERES LU

Apparently $8.7-billion just isn’t enough. The biggest news in Canadian deals from the last 24 hours is a big rejection of Potash’s offer for Germany’s K+S. Most of the other big deals today (including Centene’s $6.3-billion (U.S.) acquisition of Health Net) took place south of the border. Still, we can celebrate a strong first half of the year here in Canada with RBC and BMO leading the M&A rankings for H1, mainly thanks to that big asset transfer at Enbridge.

More »

Aston Hill loses high-profile portfolio manager to Gluskin Sheff

NIALL McGEE

Aston Hill Financial Inc. has lost a key portfolio manager, the latest in a series of setbacks for the embattled asset manager. Late Tuesday, the company announced that Jeffrey Burchell, who had been with the company since 2010 and was also its co-chief investment officer, had resigned.

“While I’m saddened to leave Aston Hill and the team; I was presented with a great opportunity to revisit my hedge-fund background that I just couldn’t pass up,” Mr. Burchell wrote in a note to advisers.

More »

More M&A deals likely as crude recovery runs out of gas

JEFFREY JONES

Hopes for a major recovery in oil prices this year are dimming, which could lead to a gusher of energy company mergers and acquisitions as corporate finances creak under the strain.

The deal flow in the Canadian oil patch has been muted so far this year, as would-be sellers waited for an uptick in commodity prices to lift the potential proceeds they could garner for their assets. At around $5-billion, the transaction value in the first half was about a quarter of the year-earlier amount.

More »

Alberta to automatically approve out-of-province securities rulings

JEFF GRAY

In Canada’s balkanized financial markets enforcement regime, when one provincial watchdog bans or suspends a fraudster or someone else who has violated securities rules, the others usually need to hold their own “rubber stamp” hearings to make the order apply in other provinces.

But the Alberta Securities Commission announced Thursday that as of July 1, most orders and settlement agreements made by other securities commissions across Canada will “automatically take effect” in Alberta, without any hearing or any notice to the person or company affected. Decisions made by regulators outside Canada, such as the U.S. Securities Exchange Commission, will not be automatically reciprocated, but could still be rubber-stamped and enforced by the ASC as they are now.

More »

Macquarie hires in equity capital markets

TIM KILADZE

Macquarie Capital Markets Canada has added an investment banker to its equity capital markets (ECM) team.

Daniel Goldberg joins the dealer as a vice-president in ECM, the group that prices and executes equity financings. Before this, Mr. Goldberg worked at CIBC World Markets, where he was a director in the office of the vice chairman under Jim Prentice, and also worked in investment banking in both Winnipeg and Toronto.

More »

Daily Deal Roundup: Brookfield’s $6.8-billion great train robbery?

DUNCAN HOOD

Given that the markets were closed for Canada Day yesterday, you won’t be surprised that there aren’t many deals to report today. But what the deals lack in number, they make up for in size, with Brookfield’s $6.8-billion offer for Australia rail freight firm Asciano making headlines on both sides of the globe. A big deal, but not big enough for some of Asciano’s shareholders, who worry it undervalues the company. To some, it could even be considered robbery.

More »

Canadian market for deals surges in first half of year

JACQUELINE NELSON

Canadian deal flow surged in the first half of the year, with large financings and acquisitions contributing to a hike in business for investment banks.

Canadian new equity issuances flew high in the first six months, as investment banks raised more than $30-billion for companies, according to data from Thomson Reuters.

More »

Lexpert: Lawyers warn proposed Digital Privacy Act may be too onerous

Lexpert

Canada’s proposed Digital Privacy Act, aimed at helping Canadians protect their personal information online, exposes everyone from a tiny convenience store to a multinational corporation to onerous requirements they may not be able to meet, some privacy lawyers are warning.

One provision of Bill S-4 that’s sounding alarms, for example, is the mandatory reporting of all data security breaches to the Privacy Commissioner, says David Fraser at McInnes Cooper.

More »

Results trump intent in proving housing discrimination: U.S. Supreme Court

ADRIAN MYERS

For those of you that aren’t avid followers of the legal “argle-bargle” and “jiggery-pokery” of the U.S. Supreme Court, you could be forgiven for thinking that Obergefell v. Hodges, which dealt with same-sex marriages, was the only major civil-rights decision the court handed down last week. And rightfully so: Obergefell is both a social and legal landmark.

More »

Daily Deal Roundup: Is a Hertz acquisition next for Element Financial?

Duncan Hood

It was big day for Canada on the deals front: Apart from the massive $3.3-billion Cenovus land sell-off to Teachers and the Prime Advisors acquisition by Sun Life, the last 24-hours have seen a pile of interesting medium and smaller deals too. Ballard Power Systems is paying $30-million for Protonex, Ricoh Canada is snapping up Graycon Group, and Magna is reportedly eyeing a German auto transmission systems manufacturer. Oh, and Element Financial still isn’t satisfied after its $8.6-billion GE Capital fleet business acquisition – it says a similar unit owned by Hertz may be next. Happy Canada Day!

More »

Legacy Oil’s downfall shows debt’s dark side

JEFFREY JONES

For the oil patch, the legacy of Legacy may be a much greater wariness of debt. At least for a while.

Legacy Oil + Gas’s debt-heaviness against a backdrop of collapsing crude prices led the energy producer into the arms of Crescent Point Energy in a deal that garnered investor approval on Tuesday.

It’s certainly not what CEO Trent Yanko envisioned when he started the business in 2009, and he says it’s a cautionary tale to other oil-industry builders. There are more than a few in downtown Calgary facing similar pressures and, if the commodity trough extends into the autumn, look for them to get picked off at bargain prices too, after exhausting other options.

More »

With Prime Advisors acquisition, Sun Life broadens asset management business

JACQUELINE NELSON

Sun Life Financial Inc. has snapped up another U.S. money manager that specializes in long-term investors, rounding out its institutional investment platform in North America.

On Tuesday, Sun Life Investment Management said it would buy Redmond, Wash.-based Prime Advisors Inc., absorbing $13-billion (U.S.) in assets under management. The terms of the deal weren’t disclosed.

More »

Amid Greek debt crisis, a round of applause for Canada's banking system

TIM KILADZE

If there’s any silver lining for Canadians in the financial calamity unfolding in Greece, it’s that this crisis should remind us of how fortunate we are.

Since the global financial meltdown started in 2007, Canadian banks have shone. The country’s largest lenders continue to rack up record profits – the Big Six banks made $33-billion combined in 2014 – and in the first few years of the economic recovery, they were praised as a paragon of prudent banking.

More »

Daily Deal Roundup: Element snags GE Capital’s fleet operations

AHMAD HATHOUT AND SERES LU

While the world worries about Greece, the Daily Deal Roundup is worried about keeping you informed about the deals of today. The banks are indeed open and willing to underwrite some blockbusters, including our deal of the day – Element’s announced acquisition of GE Capital’s fleet operations in the U.S., Mexico, Australia and New Zealand.

More »

Volatility in Asia hasn’t slowed Manulife’s zeal for real estate IPO

JACQUELINE NELSON

It’s been a rough ride for many shareholders in Asia of late, but that’s not slowing Manulife Financial Corp.’s approach to Singapore’s financial markets.

The insurer said Monday that it has launched an initial public offering for a U.S. office real estate investment trust (REIT). The company will sell 694.4 million units at a price of 82 cents (Singapore) a unit (76 cents). That’s about $569.4-million (Singapore) or $524.7-million.

More »

Element Financial already looking to future growth plans after GE deal

JACQUELINE NELSON

Element Financial Corp.’s $8.6-billion acquisition of part of General Electric Co.’s fleet management business is not the end of the company’s growth plans, according to chief executive Steve Hudson, who went so far as to name his next acquisition targets.

“This message of growth at Element is: It’s not over, it’s not over, it’s not over,” said Mr. Hudson, on a conference call with analysts Monday. “They say you have to say something three times,” he added.

More »

Canaccord Genuity capital markets head made $11.7-million last year

NIALL McGEE

Daniel Daviau, Canaccord Genuity Group Inc.’s top investment banker, made $11.7-million in fiscal 2015, according to the firm’s proxy circular, earning more than most major bank chief executive officers and scores of other household names in business.

The 50-year-old CEO of North American capital markets was paid a salary of $494,000, owns $2.6-million worth of restricted share units (RSUs) in Canaccord and was paid an $8.6-million bonus.

More »

Daily Deal Roundup: Watsa goes shopping in India, and TMAC boosts its IPO

Duncan Hood

The end of an eventful week sees Fairfax make a $120-million move in India, TMAC boost its IPO, and lots of people question the sense of Potash’s big play for Germany’s K+S Industries. Have a great weekend.

DEAL OF THE DAY: Fairfax’s Watsa to buy Indian logistics firm: sources

Fairfax India Holdings, a fund set up by Canadian investor Prem Watsa to target Indian assets, is set to take a majority stake in logistics firm National Collateral Management Services (NCMSL), two sources familiar with the matter said. One of the sources said the deal, for a 70 to 75 per cent stake in the commodities storage and services firm, could be worth $120-million to $150-million. Full story

More »

Potash Corp.’s proposed K+S takeover would be no cake walk

TIM KILADZE

Some merger ideas make sense to everyone. When Loblaw Companies Ltd. announced its blockbuster acquisition of Shoppers Drug Mart two summers ago, the strategic rationale was crystal clear, and support for it was through the roof.

But with Potash Corp. of Saskatchewan’s proposed takeover of Germany’s K+S Industries, which is expected to be worth $9.7-billion, there are already serious questions about it – and it’s only day two.

More »

Peters & Co shakes up ranks

JEFF LEWIS

Peters & Co. Ltd. shuffled its leadership ranks and said its managing director of institutional sales is retiring.

Steve Larke is leaving for personal reasons after 10 years with the Calgary-based brokerage, Peters told clients in a note. His resignation is effective Dec. 31.

The firm promoted Bryce Williams to head institutional sales. Rob Scott is now head of trading, from principal. Mitch Molloy is transitioning to managing director, capital markets.

More »

Lexpert: Canada’s privacy laws impose heavy burden

LEXPERT

Lexpert identifies and reports on emerging business issues and practice areas in the business of law. Whether online, in our magazine or in the DealsWire newsletter, we chronicle deals and lawsuits of interest, and cover issues of broad concern to the legal profession and those who purchase legal services. We hope you enjoy this sample of our latest content.

More »

Scotia Capital revamps structured products group

TIM KILADZE

Bank of Nova Scotia is reworking its structured products and managed companies businesses, which are housed under its investment banking arm.

The changes at Scotia Capital include the departure of Rajiv Bahl, who previously ran the structured products group, as well as Farooq Moosa, who oversaw Scotia Managed Companies.

More »

Sprott and Central Fund spat heads toward courts

AHMAD HATHOUT

The scrappy affair over Sprott Asset Management’s move to acquire two of Central Fund of Canada’s precious metals mutual funds has now entered the court system.

Central Fund, the corporate entity behind Central GoldTrust and Silver Bullion Trust, said in a press release on Thursday morning that a Sprott subsidiary filed a claim of oppression against the company in an Alberta court.

More »

Daily Deal Roundup: Melman and Stronach launch all-star $275-million IPO

DUNCAN HOOD

Big day for deals today: Potash makes a $10-billion play for Germany’s K+S fertilizer, RBC is close to spinning off a Swiss bank and what’s this? A new SPAC (special purpose acquisition corporation) headed by Anthony Melman, chaired by Belinda Stronach, and backed by Calin Rovinescu, Hunter Harrison, Rick Waugh and Geoff Beattie is launching an IPO to raise $275-million. I’d say it’s a done deal.

More »

Video »

Sign up for our newsletter

Blog contributors

Most Popular