TORONTO — Some of the most active companies traded Monday on the Toronto Stock Exchange:
Toronto Stock Exchange (16,079.5, down 224.53 points.)
Cenovus Energy Inc. (TSX:CVE). Energy. Down 41 cents, 8.4 per cent, to $4.47 on 21 million shares.
Enbridge Inc. (TSX:ENB). Energy. Down 37 cents, or 0.97 per cent, to $37.62 on 18.3 million shares.
Husky Energy Inc. (TSX:HSE). Energy. Up 38 cents, or 11.99 per cent, to $3.55 on 12.4 million shares.
Manulife Financial Corp. (TSX:MFC). Financials. Down 49 cents, or 2.55 per cent, to $18.72 on 9.4 million shares.
Royal Bank of Canada. (TSX:RY). Financials. Down $1.79, or 1.86 per cent, to $94.50 on 5.8 million shares.
Air Canada (TSX:AC). Industrials. Down $1.03, or 6.06 per cent, to $15.96 on 5.6 million shares.
Companies in the news:
Sobeys Inc. (TSX:EMP.A) Down 51 cents or 1.4 per cent to $37.06. Analysts said Monday that Stellarton, N.S., based grocer Sobeys Inc. will likely follow its Canadian competitors in raising supplier fees, a move they warn could lead to less competition and, relatedly, higher food costs and fewer brands on store shelves. Loblaw told suppliers last week that the cost of getting products on shelves would go up in January. Walmart Canada announced a fee hike in July that prompted United Grocers Inc., a national buying group that represents Metro Inc., to tell suppliers it expects the same cost reductions as competitors. University of Guelph food economist Michael von Massow said all the big grocery stores will likely follow suit in an effort to stay competitive.
Husky Energy Inc. — The all-share deal by Cenovus Energy Inc. to buy Husky Energy Inc. for about $3.8 billion will likely spark more mega-mergers among Canadian oil and gas majors, according to veteran oilsands analyst Phil Skolnick of Eight Capital. Several industry observers point to Calgary-based oilsands producer MEG Energy Inc. as the leading potential target, noting Husky’s failed $3.3-billion hostile takeover attempt of its smaller rival two years ago. In his report, Skolnick presents scenarios where Canadian Natural Resources Ltd. (sometimes referred to by its stock ticker, CNQ) or Imperial Oil Ltd. buy MEG, while also outlining the numbers involved if Canadian Natural combined with Imperial or Suncor Energy Inc., and if Suncor were to merge with Imperial.
Bombardier Inc. (TSX:BBD.B). Up one cent or 3.1 per cent to 33 cents. Bombardier Inc. will receive less cash than it originally had agreed to in the sale of its aerostructures business to Spirit AeroSystems Holding Inc. The company said Monday it will receive US$275 million in cash in the amended deal, down from the US$500 million in cash that was first announced last year. Spirit will also assume liabilities, including government refundable advances and pension obligations, valued at US$824 million, up from US$700 million previously announced. The sale includes operations in Belfast, U.K., and Casablanca, Morocco, as well as a maintenance, repair and overhaul facility in Dallas. Concerns about the future of the deal were raised last month after Spirit said some closing conditions were unmet, injecting a degree of uncertainty into the deal. Bombardier said Monday the closing conditions have been met and the transaction is expected to close on Friday.
Brookfield Asset Management (TSX:BAM.A). Down $1.49 or 3.3 per cent to $43.03. Blackstone Real Estate Income Trust Inc. says it has signed a deal to buy Simply Self Storage from a Brookfield Asset Management real estate fund for approximately US$1.2 billion. Simply Self Storage has a portfolio totalling about 750,000 square metres across the U.S. Blackstone says the deal will add to the trust’s portfolio of self-storage facilities and make it the third largest non-listed owner of storage in the U.S. Brookfield acquired Simply Self Storage in 2016. The deal is expected to close before the end of the year, subject to certain customary closing conditions.
This report by The Canadian Press was first published Oct. 26, 2020.
The Canadian Press