Here are the top reads on deals and financial services over the last 24 hours,
Canada’s Goldcorp to be swallowed by Newmont in $10-billion deal: Goldcorp Inc. is being swallowed by United States major Newmont Mining Corporation in a US$10-billion acquisition that sees Canada’s second-biggest gold miner by production sell at a 17-year low in its share price. This is the second huge M&A deal in the global gold sector in the past few months. Barrick Gold Corp. closed its US$6-billion acquisition of Randgold Resources Ltd only a few weeks ago. Story (Niall McGee, for subscribers)
Who’s next in the gold-industry merger wave?: In the gold sector, nothing gets the sharks circling like the combination of promising mines and a depressed stock price. The sector’s prolonged slump now has its biggest predators, Newmont Mining Corp. and Barrick Gold Corp., feeding on weaker rivals, creating expectation of further takeovers in an industry where many experts see consolidation as long overdue. Story (Andrew Willis, for subscribers)
Another one bites the dust: Goldcorp sale a further example of the hollowing out of corporate Canada: Toronto’s Barrick Gold Corp. always wanted to team up with Newmont Mining Corp. of Colorado. Merging the two giants, which have adjoining operations in gold-rich Nevada, would have created an unassailable industry leader and reduced costs by an estimated US$1-billion a year. On paper, it looked like a dream deal. But it never got off the ground, in good part because Barrick founder Peter Munk wanted the new company to stay in Toronto, not move to Denver. Were he alive today, Mr. Munk – a Canadian patriot who believed in the value of head offices – would be distraught. Opinion (Eric Reguly, for subscribers)
More than 50 companies poised to go public, CSE says: There are 55 companies preparing to go public on the Canadian Securities Exchange, a market for upstart companies that has become a popular listing venue for U.S. cannabis companies. Story (Alexandra Posadzki, for subscribers)
Montreal’s Vention raises $17-million in financing led by Bain Capital Ventures: Vention Inc., a rapidly-growing Montreal startup that enables industrial manufacturing professionals to create, design and order custom equipment with a few mouse clicks, has secured $17-million in venture financing led by Bain Capital Ventures and backed by previous investors White Star Capital, Bolt Innovation Management and Real Ventures. Story (Sean Silcoff)
Cannabis boom masked a shift in Canaccord’s wealth management business: The cannabis boom in capital markets has been a blessing and a curse for investment bank Canaccord Genuity Group Inc. The upside of the two-year bull market in pot stocks that came ahead of the legalization of recreational marijuana in Canada is obvious. Canaccord chief executive officer Dan Daviau and his team saw the potential for financing an emerging industry three years before the federal Liberal government pushed through legislation to legalize recreational use – devoting investment bankers, traders and analysts to the sector. Bay Street’s favourite topic of conversation over drinks is how much Canaccord executives are personally making off cannabis plays. Best guesses run to tens of millions. Story (Andrew Willis, for subscribers)
U.S. real estate brokerage Redfin to enter Canadian market: Redfin Corp., one of the largest real estate brokerages in the United States, on Monday made Canada its first international expansion market, thanks in large part to the outcome of the federal Competition Bureau’s multiyear legal battle with the country’s largest local real estate board over the online publication of sales data. Story (Shane Dingman, for subscribers)
Pooled-risk pension plans would give many Canadians a more financially secure retirement: As private-sector defined benefit (DB) pension plans continue to struggle, defined contribution (DC) plans are emerging as the most common option for providing retirement income. Of the three million Canadians in private-sector pension plans today, those in DC plans will soon outnumber those in the traditional DB model. But when it comes to retirement income, DC plans lack one important element: They don’t actually provide pensions. It’s up to the individual to manage a pot of money so it lasts for the rest of their (probably long) lives – and most seniors don’t have the necessary skills or desire to take on that challenge. The good news is, there’s a great option that would give these Canadians a more financially secure retirement: the pooled-risk pension. But here’s the bad news, it’s been blocked by legislation. Opinion (Bonnie-Jeanne MacDonald)
MORE FINANCIAL SERVICES NEWS
Bank earnings: Citigroup Inc said it would earn US$2 billion more in revenue from its lending activities this year than in 2018 as it reported better than expected fourth-quarter earnings, sending its shares more than 4 per cent higher. Story (for subscribers)
MORE DEALS NEWS
Cannabis sector: Aurora Cannabis Inc. has signed a deal to buy Whistler Medical Marijuana Corp. in an all-stock deal worth up to $175-million, including certain milestone payments. Story (for subscribers)
Newspaper sector: Newspaper chain MNG Enterprises Inc., controlled by secretive hedge fund Alden Global Capital LLC, on Monday offered to buy Gannett Co Inc in a $1.36 billion deal to add the USA Today and scores of other newspapers to its stable of regional publications. Story (for subscribers)
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