Duncan HoodFred Lum/The Globe and Mail
DEAL OF THE DAY: OceanaGold to acquire Romarco for its U.S.-based gold project
Australian-Canadian miner OceanaGold Corp. has agreed to buy Romarco Minerals Inc. for around $856-million, getting its hands on a low-cost gold mine that is being built in a low-risk jurisdiction. The all-share deal, equal to 68 cents a Romarco share, is a 73-per-cent premium on Romarco's closing share price on Wednesday. OceanaGold shareholders will end up with 51 per cent of the enlarged company, and Toronto-listed Romarco the rest. Full story
MERGERS AND ACQUISITIONS
Barrick sells half of South American copper mine to Antofagasta for $1-billion
Barrick Gold Corp. said it sold half of its South American copper mine to Antofagasta PLC for $1-billion, in a deal that will see the Chilean company operate the mine. The sale of Zaldivar, expected to close late this year, will help Barrick slash its $13-billion debt. Antofagasta will pay Barrick $980-million in cash when the deal closes and $25-million over the next five years for the stake in Zaldivar. Full story
MTS looks to potential buyers for Allstream business
Manitoba Telecom Services Inc. has hired advisers and wants to speak with potential buyers of its Allstream business in the second half of the year. The company has been working to turn the asset around since new CEO Jay Forbes took over earlier this year, slashing jobs and capital expenditures at the national enterprise IP services division. Full story
Potash Corp. would use market clout to sell K+S potash, CEO says
Potash Corp. of Saskatchewan Inc. would use its enormous clout to sell K+S AG's Canadian potash if it succeeded in buying its German rival, the Canadian company's chief executive officer said on Thursday. As Potash Corp. tries to convince K+S to merge, it has promised not to reduce the German miner's salt and fertilizer production. Full story
Denison Mines sells Mongolian interests to Uranium Industry
Denison Mines has sold its Gurvan Saihan joint venture in Mongolia to Czech Republic mining company Uranium Industry for $20-million (U.S.). Press release
Tesoro held unsuccessful talks to buy HollyFrontier
Tesoro Corp held talks to buy smaller rival oil refiner HollyFrontier Corp. earlier this year in a bid to join the top echelons of the competitive U.S. refining industry, according to people familiar with the matter. Both companies were in discussions in the first quarter of 2015, but the negotiations were scuttled after HollyFrontier's board of directors balked at Tesoro's terms, including the proposed price, the sources said this week.
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INITIAL PUBLIC OFFERINGS
Toy company Spin Master stock trades higher in market debut
Shares in Toronto-based toy company Spin Master Corp. are trading higher in its debut on the Toronto stock exchange. The company went public at $18 a share. The stock briefly rose to $18.64 a share before falling back to around $18.25. The stock was priced at the lower end of its initial target range of $17 to $20. The company raised $220-million in the offering and intends to use most of the proceeds to pay down debt. Full story
Indoor cycling fitness chain SoulCycle files for IPO
Indoor cycling fitness chain SoulCycle Inc. filed with U.S. regulators on Thursday for an initial public offering of common stock. Goldman Sachs, BofA Merrill Lynch and Citigroup are among those underwriting the IPO, the New York-based company said in a preliminary prospectus filed with the U.S. Securities and Exchange Commission. The filing contained a nominal fund raising target of $100-million (U.S.). Full story
PRIVATE EQUITY AND VENTURE CAPITAL
Mobile gaming startup icejam gets $707,000 in government funding
The Government of Canada is supporting icejam games inc. with a contribution of $478,775 through ACOA's business development program to assist with marketing, equipment and product development. The Government of Prince Edward Island has also approved funding up to $229,320 through the Department of Economic Development and Tourism. Press release
Sequence Bio gets $300,000 from Newfoundland venture capital fund
Sequence Bio, an early-stage company hoping to develop better platforms for data analysis to develop better drugs and achieve other "precision medicine" goals, has received $300,000 from Venture Newfoundland and Labrador. The company also obtained $200,000 in additional support from Klister Credit Corp., an investment and consulting firm based in Toronto. Full story
ANALYSIS AND INSIGHT
Taxes drove Valeant, Burger King deals, Senate report says
Tax savings drove the acquisition strategy of Valeant Pharmaceuticals International Inc. and led to Burger King's move to Canada, according to a U.S. Senate committee report. Taxes appear to be much more important to the deals than the companies say, according to a report and testimony prepared for a hearing on Thursday. Full story
The gold sector's hottest takeover prospects: quality developers
As complicated as high-profile acquisitions can seem, they often boil down to simple shopping principles. If the sale price is too good, sometimes you would be silly not to buy. That rationale is at the root of the gold sector's latest takeover deal. Australia's OceanaGold Corp., a smaller low-cost producer, is buying Romarco Minerals Inc. for $856-million in shares, creating an intermediate gold producer worth roughly $1.6-billion. Full story
How Canadian startups are disrupting the auto industry
Mojio is one of many high-tech Canadian startups seeking to disrupt the status quo in the auto industry. From Toronto's KeyFree Technologies (which seeks to transfer the role of the car key to your smartphone) to New Brunswick's AutoPulse (which sends information about your car to your service station), they're coming up with innovative new products that alter drivers' relationship with their vehicle. Full story
B.C. M&A activity holds steady as Canadian deals decline by $11-billion
Despite declines in mergers and acquisitions throughout Canada for the fourth consecutive quarter, B.C. managed to buck the trend in the second quarter and even boost the dollar value of deals taking place in the province. Full story
Know of any upcoming deals we should cover? Have suggestions for making the Daily Deal Roundup more useful? Email us at deals@globeandmail.com.