Business

Government to review $8B takeover of Canadian-based grain-handling firm Viterra

Published

1 year ago

September 26, 2023

The Cascadia grain terminal in B.C. is shown — Viterra owns multiple facilities across Canada, including the Cascadia grain terminal in Vancouver. (Ben Nelms/Bloomberg)

The federal government says it plans to review the $8-billion sale of Canadian-based grain-handling firm Viterra to a foreign conglomerate.

Viterra is controlled by multinational commodities giant Glencore, which bought the company in 2011. Prior to that, Viterra was known as Saskatchewan Wheat Pool, a Regina-based co-operative that helped stabilize grain prices on behalf of farmers for decades.

While Glencore has majority control of Viterra, two major Canadian pension plans — the Canada Pension Plan Investment Board and British Columbia Investment Management Corporation — also own minority interests in the company.

Amid a round of consolidation in the commodities sector earlier this year, U.S.-based agribusiness giant Bunge agreed to pay more than $8 billion to take over Viterra’s assets and combine them with their own.

Viterra has about 1,600 employees in Canada, scattered across 75 locations primarily in Western Canada. But around the world, Viterra has a presence in three dozen countries, employing more than 16,000 people and moving more than 70 million tonnes of grain every year.

While shareholders of either company have yet to sign off on the plan, the proposed merger hit a roadblock Tuesday when Transport Minister Pablo Rodriguez announced the federal government is going to review the deal to ensure it will benefit Canadians.

“Both companies hold ownership interests in port terminals throughout our country,” he said. “Healthy competition in the transportation sector is necessary to ensure fair pricing and access for users, especially for Canadian farmers.”

Among other assets, Viterra owns the Cascadia and Pacific Terminals at the Port of Vancouver, a grain facility in Prince Rupert, B.C., two facilities in Thunder Bay, Ont., and one in Montreal.

“Given this transaction is of significant national interest in Canada’s transportation sector and the broader supply chain, it will be reviewed under the mergers and acquisitions provisions of the Canada Transportation Act,” Rodriguez said.

It’s the second government review of the deal, after Canada’s Competition Bureau announced in June it, too, would be taking a look at it.

The government says it has up to 250 days to complete its review, which kicks the date back to at least June 2024 for it to be approved.

Shares in Bunge fell almost two per cent, to their lowest level since August, on news that the government would once again be kicking the tires on the deal.

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Business

Cineplex reports $24.7M Q3 loss on Competition Tribunal penalty

Published

21 hours ago

November 6, 2024

Anne Joseph

TORONTO – Cineplex Inc. reported a loss in its latest quarter compared with a profit a year ago as it was hit by a fine for deceptive marketing practices imposed by the Competition Tribunal.

The movie theatre company says it lost $24.7 million or 39 cents per diluted share for the quarter ended Sept. 30 compared with a profit of $29.7 million or 40 cents per diluted share a year earlier.

The results in the most recent quarter included a $39.2-million provision related to the Competition Tribunal decision, which Cineplex is appealing.

The Competition Bureau accused the company of misleading theatregoers by not immediately presenting them with the full price of a movie ticket when they purchased seats online, a view the company has rejected.

Revenue for the quarter totalled $395.6 million, down from $414.5 million in the same quarter last year, while theatre attendance totalled 13.3 million for the quarter compared with nearly 15.7 million a year earlier.

Box office revenue per patron in the quarter climbed to $13.19 compared with $12 in the same quarter last year, while concession revenue per patron amounted to $9.85, up from $8.44 a year ago.

This report by The Canadian Press was first published Nov. 6, 2024.

Companies in this story: (TSX:CGX)

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Business

Restaurant Brands reports US$357M Q3 net income, down from US$364M a year ago

Published

2 days ago

November 5, 2024

Anne Joseph

TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.

The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.

Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.

Consolidated comparable sales were up 0.3 per cent.

On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.

The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:QSR)

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Business

Electric and gas utility Fortis reports $420M Q3 profit, up from $394M a year ago

Published

2 days ago

November 5, 2024

Anne Joseph

ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.

The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.

Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.

Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.

On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.

The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 5, 2024.

Companies in this story: (TSX:FTS)

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