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.
Marijuana production companies are teaming up to keep ahead of their competitors. Canada has seen numerous mergers and acquisitions deals since the legalization of cannabis this past Oct. 17. Producers are especially keeping and eye on their U.S. competition, but it's too soon to tell who's winning the race. As of the end of November, however, Canada is in the lead.
Three technological heavyweights have joined forces to bring another cryptocurrency platform into the mainstream. In terms of mergers and acquisitions news affecting investors in Canada, Neo Global Capital, IDG Capital and Matrix Partners have partnered up with KuCoin, to bring cryptocurrency trading into the mainstream through the KuCoin exchange. The three companies have invested a combined total of $20 million in KuCoin so far.
A $5.5 billion agreement has just been signed between Encana Corp. and Newfield Exploration. In the mergers and acquisitions deal in Canada, Encana will not only be getting all of Newfield's shares of common outstanding stock, but will also take on more than $2 billion of Newfield's net debt. This marks Encana's most ambitious acquisition to date.
Guelph Hydro Electric Systems Inc. (Guelph Hydro) and Alectra Utilities Corporation will be joining forces. In mergers and acquisitions news, the Ontario Energy Board (OEB) gave the go-ahead for the merger to take place. The potential union met all the specifications of the OEB's no harm test.
The largest drilling company in the nation is making a bid for the third largest. When it comes to mergers and acquisitions headlines in Canada, Calgary's Precision Drilling Ltd. is making them by looking to acquire Trinidad Drilling Ltd. to a tune of $540 million. The all-share offer was spurred on by Trinidad Drilling's attractive American rig fleet.
A major real estate investment trust recently closed on a multi-millon dollar property in a high-profile Calgary business centre. True North Commercial Real Estate Investment Trust (REIT) of Canada has been busy in the world of mergers and acquisitions by securing the 148,000-square-foot property for $26.75 million, which closed in September. The property sits on more than 11 acres close to Calgary International Airport and to the city's main highway.
A Canadian gold company is searching for a new owner. Gold Mine Inc. is working with an investment bank to find parties interested in inking a deal amid its growing costs and operating issues. It is not averse to a mergers and acquisitions-related deal and is looking at all options including the divestment of certain mines it owns and operates in Canada and the United States. New Gold has struggled to make targets at its main mine in Ontario.
Will alcohol and cannabis be a marriage made in heaven? Many in the business world of mergers and acquisitions in Canada are thinking that may be the case. Alcohol company Constellation Brands Inc., based out of the United States has recently invested $5 billion in Canopy Growth Corp., the producers of pot in Canada. Experts are speculating there are more of these types of deals on the horizon.
Many Canadian companies are looking internationally to secure deals. Mergers and acquisitions in Canada are robust, hitting $93 billion in the first part of this year. It seems the upswing is due to the burgeoning cannabis industry, real estate and energy areas. A recent review of PricewaterhouseCoopers in Canada suggests deals stateside have increased by 8 per cent, while there have been more than 160 outbound international deals struck.