Tag: STOCKS

The Cenovus offer values MEG at $8.6 billion, including assumed debt, and is made up of half cash and half stock. MEG shareholders are set to vote on the proposal on Oct. 22.

Cenovus and MEG have neighbouring oilsands properties at Christina Lake, south of Fort McMurray, Alta.

Parkland-Sunoco deal receives Investment Canada Act approval

U.S. fuel distributor Sunoco LP’s proposed takeover of Calgary-based fuel retailer and refiner Parkland Corp. (TSX:PKI) has cleared a key regulatory milestone with Ottawa’s approval under the Investment Canada Act. The transaction is expected to close in the fourth quarter of this year, subject to remaining regulatory approvals and the satisfaction or waiver of customary closing conditions, Parkland said in a release Tuesday. A review under the Investment Canada Act considers whether foreign investments would be a net benefit to the country or cause potential harm to national security. 

The Parkland-Sunoco deal was announced at a time of fraught Canada-U.S. relations and amped-up resource nationalism amid the onslaught of U.S. President Donald Trump’s tariffs. Earlier this year, Ottawa recently updated national security guidelines under the act to account for potential harms to Canada’s economic security. The government said it will consider the size of the Canadian business, its place in the innovation ecosystem and the impact on Canadian supply chains.

Parkland and Sunoco announced the friendly cash-and-stock deal valued at US$9.1 billion including assumed debt in May following a bitter proxy battle with investors in the Canadian company unhappy with its performance and strategy. 

Parkland owns the Ultramar, Chevron and Pioneer gas station chains as well as several other brands in 26 countries. Sunoco outlets that had long operated in Canada were rebranded in 2009 under the Petro-Canada banner. Parkland also runs a refinery in Burnaby, B.C., which supplies nearly one-third of the region’s domestically supplied gasoline and jet fuel.

The deal cleared a key U.S. antitrust hurdle last month when the waiting period under the Hart-Scott-Rodino Act expired. Shareholders approved the takeover in June.

Cineplex selling Cineplex Digital Media to U.S. company Creative Realities for $70M

Cineplex Inc. (TSX:CGX) has signed a deal to sell its Cineplex Digital Media subsidiary to Creative Realities Inc., a U.S.-based digital signage company, for $70 million. CDM offers digital signage for a wide range businesses including retailers and banks as well as digital menu boards for restaurants.

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As part of the deal, Cineplex has signed a long-term agreement to continue as CDM’s exclusive advertising sales agent for CDM operated digital-out-of-home networks across Canada. 

Cineplex chief executive Ellis Jacob says the sale will provide the company with meaningful capital to continue to deliver value for shareholders. Cineplex says proceeds of the sale will be used to strengthen its balance sheet and provide cash for share buybacks, debt reduction, and general corporate purposes.

The deal is expected to close in the coming weeks, subject to regulatory approvals and other customary closing conditions.

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Cineplex says box office revenue for the third quarter totalled $159.5 million, down from $174.9 million a year earlier.

Cineplex chief executive Ellis Jacob says outside a tough comparative last August, with the release of Deadpool & Wolverine, the third-quarter box office performed well compared with a year ago. He added that the success of Taylor Swift, The Official Release Party of A Showgirl last weekend marked a dynamic start to the fourth quarter.

Cineplex has 171 movie theatres and entertainment venues across Canada.

Aritzia’s Q2 profit surge driven by U.S. customer growth, operational changes: CEO

Aritzia Inc. said strength in its U.S. business and moves to avoid higher shipping fees boosted its latest quarterly results. “We’ve seen outstanding new customer growth in the United States, where our base of loyal clients expands quarter after quarter. We’re also super pleased with our second-quarter results in Canada,” Aritzia CEO Jennifer Wong told analysts on a call Thursday. 

The Vancouver-based clothing retailer reported $66.3 million in net income during its second quarter, up from $18.2 million during the same period last year. Its net revenue rose by almost a third to $812.1 million, from $615.7 million during the same period a year earlier. 

The company said its U.S. net revenue rose more than 40 per cent to $486.1 million, accounting for just under 60 per cent of its total revenue. Wong also noted the company launched a new international e-commerce platform in August, which she said was fuelling higher revenue growth. “Its performance in the first six weeks has meaningfully exceeded our expectations, and we’re confident we’ll hit our target to triple sales within two years or less,” she said. 

In August, the U.S. ended what’s known as the de minimis exemption, which had allowed packages worth $800 or less to ship south of the border without duties. “Previously, under the de minimis exemption, we utilized our existing supply chain network in Canada to fulfil a portion of U.S. e-commerce orders. However, the removal of the de-minimis exemption in August required an operational pivot,” Wong said. 

She said the company relocated all U.S. order fulfilment to its Ohio distribution centre, which was expanded last year to more than double its previous size. Wong said the company hired additional staff at the facility. 

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“Despite headwinds from the elimination of the de minimis and higher reciprocal tariff rates on Vietnam and Cambodia, our proactive mitigation strategies and strong revenue growth have positioned us very well,” she said. “As a result, our margin outlook for fiscal 2026 is unchanged at 15.5 to 16.5 per cent. We’re leveraging our agile global supply chain to minimize tariff exposure where possible.” 

Todd Ingledew, Aritzia’s chief financial officer, said that due to the retailer’s year-to-date performance and improved expectations for the second half of the year, it is raising its net revenue forecast for the full fiscal year to between $3.3 billion and $3.5 billion. In its first-quarter report in January, Aritizia had predicted net revenue of $3.1 billion to $3.25 billion. 

For the second quarter, Aritzia’s net income per diluted share came in at 56 cents compared to 16 cents per diluted share a year earlier. On an adjusted basis, Aritzia’s net income amounted to $69.8 million, rising from $24.5 million during the second quarter of last year.

U.S. government to take 10-per-cent stake in Canadian mining company Trilogy Metals

Vancouver-based Trilogy Metals Inc. (TSX:TMQ) says the U.S. government will take a 10% stake in the mineral exploration company, which has mining interests in Alaska that Washington wants to see developed. The U.S. government is spending US$35.6 million on the stake, and has options to increase it further in the future. The transaction remains subject to regulatory and other approvals.

The announcement comes as U.S. President Donald Trump signed an executive order that directs a road to be built in Alaska allowing access to the Ambler mining district, an area rich in copper where Trilogy Metals has an interest through a joint venture. The long-debated Ambler Road project was approved in the first Trump administration, but was later blocked by the Biden administration after an analysis determined the project would threaten caribou and other wildlife and harm Indigenous peoples that rely on hunting and fishing. 

“This proposed partnership with the U.S. Government represents a significant milestone for Trilogy Metals and for the development of a secure, domestic supply of critical minerals for America in Alaska,” Trilogy Metals CEO Tony Giardini said in a news release. The partnership interest underscores the strategic importance of Trilogy’s Upper Kobuk Mineral Projects in supporting U.S. energy, technology, and national security priorities, he said.

U.S. Secretary of the Interior Doug Burgum said the investment will help secure critical mineral supplies. 

“They’re (Trilogy Metals) one of the companies that has mining claims in this area that is a remote wilderness right now, and again making that investment so we can make sure that we’re securing these critical mineral supplies and that ownership in that company will benefit the American people,” he said. 

Maple Leaf Foods is keeping a 16 per cent stake in Canada Packers and the two companies have entered into an evergreen supply agreement. It will also be an anchor customer for Canada Packers which will supply pork for its prepared meats business.

Michael McCain, executive chair at both companies, says Maple Leaf Foods and Canada Packers are moving forward as independent entities, each with a clear investment profile and experienced teams. He says the McCain family and McCain Capital Inc. are fully committed to the future of both companies.

TMX Group acquires U.S.-based data and analytics provider Verity

TMX Group (TSX:X) says it has acquired Verity, an investment research management system, data, and analytics provider. Financial terms of the agreement were not immediately available.

Verity has two core products. VerityRMS is a research management system, while VerityData offers enhanced data sets and insights primarily focused on public equity filings.

TMX Datalinx president Michelle Tran says the addition of Verity strengthens the company’s ability to serve a growing global client base.

TMX Group is the operator of the Toronto Stock Exchange and other markets.

MEG Energy says Glass Lewis recommends shareholders back Cenovus offer

MEG Energy Corp. (TSX:MEG) says a second major independent proxy advisory firm has recommended its shareholders back a takeover offer for the company by Cenovus Energy Inc. (TSX:CVE). The company says Glass, Lewis & Co. has issued a report recommending shareholders vote for the cash-and-stock offer by Cenovus over a rival all-stock offer by Strathcona Resources Ltd.

The report comes after proxy advisory firm Institutional Shareholder Services Inc. said last week that MEG shareholders should support the Cenovus bid.

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The Cenovus offer must be approved by a two-thirds majority vote by MEG shareholders, expected to be held on Oct. 9. Strathcona (TSX:SCR) has said it intends to vote its 14.2 per cent interest in MEG against the deal.

Cenovus and MEG have side-by-side oilsands properties at Christina Lake, south of Fort McMurray, Alta., while Strathcona also has operations in the region.

Stella-Jones signs deal to buy Brooks Manufacturing for US$140 million

Utility pole company Stella-Jones Inc. (TSX:SJ) has signed a deal to buy U.S.-based Brooks Manufacturing Co. for US$140 million.

Brooks is a maker of treated wood distribution crossarms and transmission framing components. It was founded in 1915 and operates a facility in Bellingham, Wash.

Stella-Jones chief executive Eric Vachon called the acquisition a natural fit. “The addition of Brooks bolsters Stella-Jones’ suite of solutions, enhancing its ability to meet the growing demand of utilities and unlock new growth opportunities,” Vachon said in a statement Tuesday. “The acquisition reflects our strategic focus and aligns with our vision to make Stella-Jones a partner of choice to our infrastructure customers.”

Brooks’ sales for 2024 totalled about US$84 million. 

RBC Capital Markets analyst James McGarragle called the deal a “strategically positive move.” “It creates a valuable growth platform for Stella-Jones by diversifying its product offering and leveraging Brooks’ established brand and customer relationships,” McGarragle wrote in a note to clients. “Furthermore, the acquisition aligns with Stella-Jones’ long-term strategic objectives to expand beyond traditional product categories and accelerate growth in the infrastructure segment, positioning the company to capitalize on ongoing investments in utility modernization.”

The deal is subject to closing conditions, including U.S. regulatory approval, and is expected to occur by the end of the year. The deal for Brooks follows the acquisition by Stella-Jones of Locweld Inc., a designer and manufacturer of lattice transmission towers and steel poles, earlier this year.