Torys LLP has released its much-anticipated Private Equity in Focus 2016 report. It considers how private equity deal-making in 2015 has set the stage for this year's transactions. Torys' report helps investment pros peer into what lies ahead in 2016 through three levels of focus: in the markets, in the deals, and in the terms.
Ottawa is talking to the country's largest pension funds about investing in billions of dollars worth of infrastructure projects to help stimulate the economy, Reuters reported. Canada's pension funds, which are among the world's biggest infrastructure investors, say that the projects will need to be structured in a way that limits the risk they take if they are to be lured into backing them.
Canada's second-biggest dairy, Agropur Cooperative, said it is looking to grow in the United States, possibly through acquisitions, in the face of an expected erosion of its market share at home due to recent international trade deals. Argopur raised $300 million from the Caisse de dépôt et placement du Québec and other investors in December.
Faced with record low prices for heavy crude, Canadian energy companies are sacrificing other parts of their business to keep higher-cost oil sands production going and safeguard the billions already invested in these multi-decade projects, Reuters reported. The prospective buyers of assets on the block include pension funds and private equity firms.
The bidding war for Australian freight giant Asciano Ltd has heated up as local rival Qube Holdings Ltd upped its proposal to A$9 billion (US$6.4 billion), trumping Canada's Brookfield Asset Management, Reuters reported. Asciano said it favoured Qube's approach, dropping its previous preference for Brookfield's offer. It also said it expected Brookfield to raise its bid.
Canada's biggest pension funds say they are walking away from more and more global infrastructure deals, citing concerns that intense competition for assets has driven valuations too far, Reuters reported. The shift could help cool global prices for tunnels, airports, toll roads and other infrastructure as Canadian pension plans are among the world's biggest and most active buyers.
GFL Environmental has closed its $800 million buy of solid waste business Matrec Services, the company’s largest acquisition to date. It is also this year’s first large-cap Canadian private equity deal, thanks to an international group of investors that accounted for a major share of the purchase price.
U.S. home improvement retailer Lowe's Cos Inc agreed to buy Canada's Rona Inc in a deal valued at $3.2 billion, winning over Rona's board with a far higher offer than its previous unsolicited bid in 2012, Reuters reported. Rona's largest investor, the Caisse de dépôt et placement du Québec, said it would accept the offer.
Brookfield Asset Management has withdrawn an offer to buy the 24.4 percent stake in infrastructure company Invepar held by Brazil's Grupo OAS, Reuters reported. The deal was key to helping OAS emerge from bankruptcy protection proceedings. Brookfield had offered to pay about US$341 million for the Invepar stake and secured the right to outdo bids from any other interested party.
Brookfield Asset Management has been exploring an acquisition in recent months of General Growth Properties Inc, the U.S. mall operator with a market value of US$24 billion, sources told Reuters. Brookfield, which owns about 34 percent of GGP, has approached several potential deal partners, including sovereign wealth funds, to discuss possibly taking the company private, the sources said.