The business world is looking pretty rosy for the new year and that has dealmakers smiling. Predictions about the mergers and acquisitions realm in Canada are in and there is nothing but optimism for 2019. With a domestic economy that's relatively stable, still low interest rates and a dollar that seems to be rallying, those who took part in a recent survey indicate there is reason for the bright outlook.
In certain cases, all that glitters is gold. An industry that was quickly losing its shine has got back some of its sparkle with recent mergers and acquisitions. Recently activity in the gold mining sector in Canada has created some excitement. Newmont Mining Corporation scooped up Goldcorp Inc. creating the world's biggest miners of gold, while Barrick Gold Corp. acquired Randgold Resources Ltd.
Some of Canada's largest banking institutions are cultivating cannabis clients. Some of the biggest business and commercial outlays from these banks are loans to entrepreneurs in Canada invested in the now legal cannabis market. Both the Canadian Imperial Bank of Commerce (CIBC) and the Bank of Montreal (BMO) provided $80 million loan to marijuana cultivator PharmHouse.
The two major railway companies in the country are on track to weather possible economic fallout from the U.S.-China trade war. Amid business and commercial undertakings in Canada last year, Canadian Pacific Railway and Canadian National Railway actually drove total rail freight traffic up by four per cent in 2018 thanks to shipping more than 20 per cent more petroleum and oil during the year. Even with a pipeline shortage of oil in Canada, crude by railway exports increased.
Toronto Dominion Bank was the pack forerunner when it came to dealmaking in 2018. It was a year in Canada that was replete with mergers and acquisitions deals with TD Bank's securities division outshining its competitors. The slowpoke area of business in 2018, however, seems to have been in equity financing -- the slowest it had been in a decade.
An new entity has been created by the coming together of two managed service providers. In mergers and acquisitions news in Canada, Fully Managed Technology Inc. and CareWorx Corporation have merged, giving birth to CareWorx Fully Managed. The new company will have 270 employees under its wing as it takes flight.