What to know about the deal: A look at the companies and people who make it and the impact they’re having on Canada
Posted October 08, 2018 05:29:54 The companies and individuals involved in the deal are as follows: Canadian Tire Corp. Canadian Tire Holdings Inc. Canopy Growth Corp. CannaRoyalty Corp. CCM Group Inc. CIBC Capital Markets Inc. Credit Suisse Group AG CIBC Global Markets Inc, which acquired the company from the U.S. Federal Reserve in 2019, also owns Canopy.
It is the second-largest holder of Canopy shares after Canadian Pacific Railway Co. The deal has a market value of about $14 billion.
Canada’s government says it’s expected to make a decision about the transaction by the end of the year.
The two companies are both based in Toronto.
The companies will each pay a $1.9-billion (U.S.) dividend.
Canadian Prime Minister Justin Trudeau, a staunch supporter of cannabis legalization, has made the announcement that he will approve the deal at the end to give it greater clout.
(Photo: Sean Kilpatrick/The Canadian Press)The deal, which will also give Canopy more bargaining power in negotiating with other big Canadian companies, is expected to give the federal government more clout in negotiating the terms of the deal.
The government said it was expected to decide by the middle of 2018 on whether to approve the $14.6-billion deal.
Canada is expected in the coming months to approve another $6.7-billion transaction with Canadian oil and gas company Suncor Energy Inc. to supply the company’s tar sands.
Suncor, which is based in Edmonton, has been one of the few Canadian players in the tar sands industry, producing about 40 per cent of Canada’s tar sand.
Suncoast Resources Ltd.
is owned by Canadian Imperial Bank of Commerce.
The government says the deal with Canadian Tire will be similar to the one it made with Canna Royalty earlier this year.
Canadian Tobacco Group Inc., which acquired Canadian Tire from Canadian Pacific Railways in 2019 and is based on the banks’ Toronto campus, will become the second largest holder of Canadian Tire shares after Canopy, with a market capitalization of about about $18 billion.
Carens Corp. will be the third largest holder, with an outstanding market value that is roughly $14bn.
The three companies will pay a combined $6 billion dividend.
Canvas, a company that focuses on digital marketing, is also the fourth largest holder.
Canadian Tire Corp.’s board of directors approved the deal Wednesday and will vote on it by the close of business Friday, the Canadian Press reported.