Here are the top reads on deals and financial services over the last 24 hours:
BMO boosts its dividend as profit bumps higher, but still falls short of estimates: Bank of Montreal reported a 5-per-cent bump in profit and raised its quarterly dividend thanks to strong U.S. growth and muted loan losses, but the results still fell shy of analysts’ forecasts due partly to severance costs. Canada’s fourth-largest bank by assets faced high expectations in the second quarter after posting impressive results in the first quarter of its fiscal year, despite a backdrop of slowing economic growth in Canada. Story (James Bradshaw, for subscribers)
Canadian Natural buys assets for $3.8-billion as Devon Energy exits Canada’s oil patch: Canadian Natural Resources Ltd. said Wednesday it is purchasing the Alberta assets of U.S.-based Devon Energy Corp. for $3.8-billion as another foreign company exits Western Canada’s oil fields. Devon Canada has capacity to produced 128,000 barrels per day – including 108,000 in the oil sands and 20,000 b/d of conventional heavy oil – though that has been shaved to 122,800 b/d because of the current production-curtailment order by the Alberta government. Story (Shawn McCarthy, for subscribers)
DBRS sold to Morningstar to create global reach: The U.S. company has signed a deal to buy the Canadian debt-rating agency for US$669-million. For Morningstar, the deal signals an attempt to diversify away from its traditional focus on equity funds. The deal is expected to close in the third quarter this year. Story (Tim Kiladze, for subscribers)
New home construction could take $8-billion stress-test hit, mortgage experts warn: Canada’s mortgage stress test is taking a toll on new house construction, with building activity expected to drop by as much as $8-billion this year alone, a new report estimates. Story (Janet McFarland, for subscribers)
MORE FINANCIAL SERVICES NEWS
CMHC’s first-quarter earnings increase to $394-million despite dip in revenue: Canada Mortgage and Housing Corp. says its net income increased to a more normalized rate in the first quarter as the country’s economy continued to modestly improve. Story (Canadian Press, for subscribers)
Morgan Stanley cuts about half a dozen Asian equities jobs, sources say: Morgan Stanley has cut about half a dozen equity sales, trading and research jobs across Asia as part of a global cost-cutting move, people familiar with the matter told Reuters on Wednesday. Story (Reuters)
MORE DEALS NEWS
Brookfield nearing deal for 50-per-cent stake in Spanish solar group X-Elio: The Canadian asset manager is close to sealing a deal with U.S. infrastructure fund KKR and Spain’s Ribera family to buy a 50-per-cent stake in solar group X-Elio, according to three sources with knowledge of the matter. Story (Reuters, for subscribers)
Nissan CEO sees no big downside to FCA-Renault merger: Nissan sees no major downside to partnering with a combined Renault and Fiat Chrysler, it said on Wednesday in a lukewarm endorsement of the proposed US$35-billion tie-up, which would complicate an already uneasy alliance. Story (Reuters)
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