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CIBC scraps Caribbean sale as Canadian banks face hurdles selling overseas assets

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By Nichola Saminather

b(Reuters) – Canadian Imperial Bank of Commerce (CIBC) became the latest Canadian bank to face hurdles in exiting disappointing acquisitions, joining rivals still holding overseas assets they have sought to sell even as they look to deploy record levels of capital.

Canada‘s fifth-largest lender said on Wednesday it had scrapped the $797 million sale of a 66.7% stake in its FirstCaribbean business to GNB Financial after failing to get regulatory approval.

CIBC’s inability to exit challenging Caribbean markets reflects the hurdles Canadian banks have faced in making an M&A strategy work. The problem is especially acute now with the banks sitting on combined excess capital of C$70 billion ($55 billion), due to a pandemic moratorium by regulators on share buy backs and increasing dividends.

“There have been many instances where the banks have bought something (overseas) and then had to divest because it didn’t pan out from a strategic standpoint,” said Anthony Visano, managing director of Kingwest & Company, which holds some Canadian banks.

CIBC’s challenge “is a pretty good proxy for the broader experience,” he added.

Bank of Nova Scotia faced similar regulatory opposition when it tried to divest its operations in Antigua and Guyana in 2019, and still owns the latter. Royal Bank of Canada, which announced the sale of its Eastern Caribbean operations in December 2019, has yet to finalize the deal. https://reut.rs/36yVZMb

CIBC’s failed sale is a negative as the region faces challenges, Barclay’s equity analyst John Aiken said in a research note.

While it will likely take several years for FirstCaribbean to return to its peak contribution of 4% to CIBC’s earnings, “in a growth-starved sector, retaining this potential upside is a positive for longer-term shareholders,” National Bank Financial analyst Gabriel Dechaine wrote in a note.

CIBC shares rose 1.1% to C$111.53 in morning trading, compared with a 0.1% gain in the Toronto stock benchmark.

($1 = 1.2777 Canadian dollars)

 

(Reporting by Nichola Saminather in Toronto; Additional reporting by Sohini Podder in Bengaluru; Editing by Shailesh Kuber and Chris Reese)

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RCMP arrest second suspect in deadly shooting east of Calgary

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EDMONTON – RCMP say a second suspect has been arrested in the killing of an Alberta county worker.

Mounties say 28-year-old Elijah Strawberry was taken into custody Friday at a house on O’Chiese First Nation.

Colin Hough, a worker with Rocky View County, was shot and killed while on the job on a rural road east of Calgary on Aug. 6.

Another man who worked for Fortis Alberta was shot and wounded, and RCMP said the suspects fled in a Rocky View County work truck.

Police later arrested Arthur Wayne Penner, 35, and charged him with first-degree murder and attempted murder, and a warrant was issued for Strawberry’s arrest.

RCMP also said there was a $10,000 reward for information leading to the arrest of Strawberry, describing him as armed and dangerous.

Chief Supt. Roberta McKale, told a news conference in Edmonton that officers had received tips and information over the last few weeks.

“I don’t know of many members that when were stopped, fuelling up our vehicles, we weren’t keeping an eye out, looking for him,” she said.

But officers had been investigating other cases when they found Strawberry.

“Our investigators were in O’Chiese First Nation at a residence on another matter and the major crimes unit was there working another file and ended up locating him hiding in the residence,” McKale said.

While an investigation is still underway, RCMP say they’re confident both suspects in the case are in police custody.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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26-year-old son is accused of his father’s murder on B.C.’s Sunshine Coast

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RICHMOND, B.C. – The Integrated Homicide Investigation Team says the 26-year-old son of a man found dead on British Columbia’s Sunshine Coast has been charged with his murder.

Police say 58-year-old Henry Doyle was found badly injured on a forest service road in Egmont last September and died of his injuries.

The homicide team took over when the BC Coroners Service said the man’s death was suspicious.

It says in a statement that the BC Prosecution Service has approved one count of first-degree murder against the man’s son, Jackson Doyle.

Police say the accused will remain in custody until at least his next court appearance.

The homicide team says investigators remained committed to solving the case with the help of the community of Egmont, the RCMP on the Sunshine Coast and in Richmond, and the Vancouver Police Department.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.



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Metro Vancouver’s HandyDART strike continues after talks break with no deal

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VANCOUVER – Mediated talks between the union representing HandyDART workers in Metro Vancouver and its employer, Transdev, have broken off without an agreement following 15 hours of talks.

Joe McCann, president of Amalgamated Transit Union Local 1724, says they stayed at the bargaining table with help from a mediator until 2 a.m. Friday and made “some progress.”

However, he says the union negotiators didn’t get an offer that they could recommend to the membership.

McCann says that in some ways they are close to an agreement, but in other areas they are “miles apart.”

About 600 employees of the door-to-door transit service for people who can’t navigate the conventional transit system have been on strike since last week, pausing service for all but essential medical trips.

McCann asks HandyDART users to be “patient,” since they are trying to get not only a fair contract for workers but also a better service for customers.

He says it’s unclear when the talks will resume, but he hopes next week at the latest.

The employer, Transdev, didn’t reply to an interview request before publication.

This report by The Canadian Press was first published Sept. 13, 2024.

The Canadian Press. All rights reserved.

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