Streetwise newsletter: Canadian Bud firms face fork in the road; Scotiabank’s bet on Chilean takeover

Canadian bud companies are facing a fork in the road over their vulnerability to the USA. Two distinct deals introduced Tuesday highlight the intricacies of the problem: Leave the developing economy south of the border entirely or push deeper. (Christina Pellegrini, for readers)

Brian Porter repeats something so often it is almost an incantation. Since taking over as Bank of Nova Scotia’s chief executive officer four decades back, he is constantly stressed an global strategy that’s uber-focused on Mexico, Chile, Colombia and Peru. (Tim Kiladze, for readers)

Scotiabank says it has submitted an offer to purchase a majority stake in a Chilean bank for $2.9-billion.

Bank of Nova Scotia led off the fourth-quarter earnings season for Canada’s largest banks with a 3-per-cent bulge in gain and bid $2.9-billion for a majority stake in a mid sized bank. (James Bradshaw)

Goldman Sachs Group is one of around five bidders for ScotiaMocatta, the metals trading arm of Canada’s Bank of Nova Scotia, where it is seeking around $1-billion (U.S.), sources with knowledge of the matter told Reuters.

ELSEWHERE IN FINANCIAL SERVICES

Canadian mortgage lender Home Capital Group Inc said on Tuesday the West Face Long Term Opportunities Global Master LP had sent it a draft statement alleging misrepresentation and promising $70-million in settlement.

Britain’s banks could deal with a “disorderly” Brexit without having to curtail lending or be bailed out by taxpayers, the Bank of England said on Tuesday after carrying out its yearly health check on creditors.

DAILY DEALS

Japan’s SoftBank Group Corp is offering to buy shares of Uber Technologies Inc in a cost of $48-billion, a 30 percent discount to its latest evaluation of $68.5-billion, a person familiar with the matter said on Monday.

CT Real Estate Investment Trust has signed a deal to buy seven possessions from RioCan Real Estate Investment Trust for $200-million.

1QB Information Technologies Inc. (1QBit) has formally announced the closing of $45-million “Series B” round led by Fujitsu Limited, with additional strategic investment by Accenture, Allianz, The Royal Bank of Scotland, and CME Ventures.

WHAT WE’RE READING

Anglo-Dutch oil company Royal Dutch Shell radically revised its climate change policy now in the wake of sustained lobbying from institutional shareholders.

Courtesy: The Globe And Mail

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