Here are the top reads on financial services and deals,
TRANS MOUNTAIN DEAL
The news: The Trudeau government is buying the Trans Mountain pipeline from Kinder Morgan at a cost of $4.5-billion, saying this extraordinary move is necessary to ensure additional capacity is built to get Canadian oil to new markets. Story (Steven Chase, Jeff Lewis and Kelly Cryderman)
The explainer: Ottawa is betting big on a politically divisive pipeline project, spending $4.5-billion to buy the Trans Mountain expansion from Kinder Morgan. Finance Minister Bill Morneau, who announced the move Tuesday, calls the deal “the best way to protect thousands of good, well-paying jobs.” But big questions still remain about how the Trudeau government will handle B.C. and First Nations’ opposition to the pipeline, and when and how the pipeline will be built. Explainer
The potential buyers: Buyers could prove elusive as the federal government seeks to offload the Trans Mountain pipeline and expansion project, despite pledges by Ottawa to shoulder risks and help fund construction. Story (Jeff Lewis and Kelly Cryderman, for subscribers)
Politics: Ottawa’s decision to nationalize the Trans Mountain pipeline project and get the bulldozers rolling this summer has transformed the opposition on B.C.’s coast: The fight is no longer with a Texas oil giant − this is now Justin Trudeau’s pipeline. Story (Justine Hunter)
By the numbers: Kinder Morgan Canada Inc. is being paid handsomely for its Trans Mountain pipeline and its well-publicized troubles expanding it. Story (Jeffrey Jones, for subscribers)
Analysis: In a move reminiscent of the kind of bold, audacious gambit his father, Pierre Elliott, was once known for, Prime Minister Justin Trudeau just nationalized a pipeline. It represents the biggest gamble of his political life. Opinion (Gary Mason)
Analysis: When Bill Morneau strolled down Ottawa’s Wellington Street this morning with Natural Resources Minister Jim Carr, he looked like a confident Bay Street CEO once again. Opinion (Campbell Clark)
Analysis: This is not the first time a Liberal government in Ottawa has decided to meddle in the oil patch. But it’s the first time it’s been done so in defence of Alberta’s interests and in defiance of its own political base. That tells the world how important it considers the proposed Trans Mountain pipeline to be for Canada. Opinion (Konrad Yakabuski)
FINANCIAL SERVICES WRAP
Bank hackings: Bank of Montreal and Simplii Financial are grappling with the fallout from apparent data breaches that may have exposed sensitive personal and financial information belonging to tens of thousands of customers. Story (James Bradshaw)
Bank earnings: Bank of Nova Scotia’s expanding international footprint fuelled larger second-quarter profits as Canada’s third-largest lender continues to grab share in key Latin American markets. Story (James Bradshaw)
U.S. bank outlook: JPMorgan Chase & Co corporate and investment bank chief Daniel Pinto said that second-quarter markets revenue looks like it will be flat compared with a year earlier. Story
DEAL WRAP
Aecon reaction: China’s envoy has accused the federal government of discrimination for blocking the takeover of a Canadian construction giant by a Chinese state-owned enterprise on national security grounds, calling on Canada to get rid of such ”demons” of prejudice against his country. Story (Robert Fife and Steven Chase)
Real estate sector: A Chinese billionaire has emerged as the buyer for Hudson’s Bay Co.’s key retail property in downtown Vancouver, a sign that some Chinese investors are able to make big foreign real estate purchases. Story (Rachelle Younglai, for subscribers)
Quebec retail investment: La Maison Simons is bringing in outside investors for the first time in its storied history, striking deals with two public-sector partners that will help fund a new distribution centre key to its strategy as it confronts an unforgiving retail environment. The Quebec City-based clothing store chain, believed to be the oldest privately-owned family business in the country at 178 years, is opening its share capital to the Caisse de dépôt et placement du Québec and Investissement Québec after weeks of talks. Story (Nicolas Van Praet)
Listing: Cannabis company MedMen Enterprises’s deal to go public in Canada with a $1.65 billion valuation is the latest signal the U.S.’s northern neighbour is poised to capture more marijuana investment. Story
Another angle on MedMen: Another American cannabis company is listing its shares in Canada, sparking investor interest in U.S. pot stocks at a time when many listed marijuana producers already enjoy steep valuations. Story (Christina Pellegrini, for subscribers)
Takeover approval: Bayer won U.S. approval for its planned takeover of Monsanto after agreeing to sell about US$9 billion in assets, clearing a major hurdle for the US$62.5 billion deal that will create by far the largest seeds and pesticides maker. Story
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