Latest news with #takeover
Yahoo
2 days ago
- Business
- Yahoo
Trump Says Steel, Aluminum Tariffs Will Double to 50%
The president said U.S. Steel, which was in a deal to be taken over by Tokyo-based Nippon Steel, would remain U.S.-controlled.
Globe and Mail
3 days ago
- Business
- Globe and Mail
Waterous fund would own more than half of company formed from Strathcona's takeover of MEG Energy
An investment fund led by Strathcona Resources Ltd.'s SCR-T executive chairman will control more than half of the shares of the oil company that would result from Strathcona's $5.9-billion takeover of MEG Energy Corp. MEG-T If Strathcona's hostile bid for the rival oil sands producer is successful, Adam Waterous's Waterous Energy Fund will acquire $662-million of stock in the combined company to put its stake at 51 per cent, according to details of the offer released in the formal bid document on Friday. WEF currently owns 79.6 per cent of Strathcona shares. Strathcona announced its unsolicited cash-and-stock offer for MEG on May 15, saying the two oil sands-producing entities are highly complementary in geography, operations, reserve-life indexes and profit margins. Why Canadian energy is a secret bargain, spurring a hostile takeover bid in the oil sands Mr. Waterous said MEG shareholders would benefit in three ways: through a 9 per cent premium over the value of their shares, as measured when the deal was announced, higher earnings and cash flow per share and an improvement in credit rating to investment-grade status, which will reduce the cost of capital. 'This is the financial Abominable Snowman – often talked about but never seen,' he said in an interview. He pointed out that WEF's participation in the deal, at a cost of $30.92 a share, would represent the largest equity investment in the Canadian oil patch in more than a decade. 'And we think we're going to get private-equity rates of return on that,' he said. Strathcona is offering MEG shareholders 0.62 of a Strathcona share and $4.10 in cash for each MEG share. The bid will remain open until Sept. 15. MEG shares were down 2 per cent at $24.11 on the Toronto Stock Exchange on Friday. Strathcona was up 2 per cent at $29.49, putting the value of its offer at $22.38, suggesting investors are still wagering on a higher offer. Analysts have speculated some of the country's large established oil sands companies may consider riding in as white knights. In a statement on Friday, MEG urged its shareholders not to tender to the Strathcona bid. The takeover target said it had formed a special committee of its board, which will evaluate the offer with the company's financial advisers. It plans to respond by June 16 days with a recommendation. It said it remains committed to its long-term strategy and is confident that it will create value. Officials declined to comment further. According to the bid circular, Strathcona amassed a 9.2 per cent interest in MEG through share purchases in the first and second quarters of this year. Mr. Waterous approached MEG director Jeff McCaig on April 10 to discuss the merits of a potential deal, and on April 28, sent a formal proposal outlining terms and conditions, including the price. On May 13, MEG Chairman Jim McFarland wrote back to say the company was not interested. Strathcona went public with its bid two days later. When they rejected the friendly approach, MEG's directors did not know that Strathcona was close to announcing a series of asset sales to focus its operations on heavy oil and reduce its debt, Mr. Waterous said. Just before announcing its bid, it sold Montney natural gas assets in two deals for total proceeds of $2.84-billion. 'MEG has not yet had the opportunity to evaluate our offer. So this is the first time. Now that they see we are such a lookalike business to them, a bigger look alike business, I think it will be much more straightforward for the board to be able to see the merits of the financial triple-jump,' he said.
Wall Street Journal
3 days ago
- Business
- Wall Street Journal
Trump Is Praising His U.S. Steel Deal. No One Is Sure What It Means
Nippon Steel 5401 0.68%increase; green up pointing triangle and U.S. Steel X 1.00%increase; green up pointing triangle have billions on the line in their blockbuster tie-up. They are waiting for President Trump to explain how it's going to move forward. Trump is scheduled to speak to U.S. Steel workers Friday about the planned deal between Nippon Steel and U.S. Steel, which he hailed a week ago as a 'partnership.' The Tokyo-based steelmaker for the past year and a half has been pursuing a $14 billion takeover of Pittsburgh-based U.S. Steel, in recent months pledging additional investment in the company's plants to help win Trump's backing.
CTV News
3 days ago
- Business
- CTV News
Strathcona formally launches takeover bid for oilsands peer MEG Energy
The MEG Energy Corp. logo is seen in this undated handout photo. THE CANADIAN PRESS/HO, MEG Energy *MANDATORY CREDIT* CALGARY — Strathcona Resources Ltd. has formally launched its takeover bid for fellow oilsands producer MEG Energy. Its offer, open until Sept. 15, comprises 0.62 of a common share of Strathcona and $4.10 in cash for each MEG share it doesn't already own. MEG said Friday that its board as well as legal and financial advisers will consider the offer. A special committee of independent directors will assist in that review. The target company is urging shareholders to take no action until it has made a recommendation, which it expects to do within 15 days. Also Friday, Strathcona announced an equity commitment letter with Waterous Energy Fund, whose CEO Adam Waterous is executive chairman of Strathcona. The fund owns almost 80 per cent of Strathcona shares, and the new investment is worth about $662 million. 'WEF's major further investment in Strathcona reflects our view that more than eight years into building Strathcona, our best years are in front of us. As part of the offer, we are asking MEG shareholders to join us as fellow shareholders in Strathcona and trust the Strathcona team as stewards of their capital,' Waterous said in a release Friday. 'We therefore believe it is important that we eat our own cooking, ensuring no one will be more focused on increasing Strathcona's value beyond current levels than WEF. We firmly believe Strathcona represents compelling value at this price with a large margin of safety, and that we and the partners in our fund will do very well over the long run.' Strathcona announced its ambitions to snap up MEG earlier this month. On a call with analysts at the time, Waterous said his company and MEG have assets so complementary they are like 'doppelgangers' or 'brothers from another mother.' Strathcona and MEG both extract bitumen using steam-driven techniques in eastern Alberta and don't have fuel refining or retail businesses like some bigger oilsands players. Shortly before the MEG bid was announced, Strathcona signalled its plans to become a pure-play heavy oil company when it announced the sale of its Alberta shale natural gas operations in three separate deals for a total of $2.84 billion. It also said it bought the Hardisty crude-by-rail terminal in Alberta for about $45 million. Strathcona shares rose more than two per cent to $29.42 in Friday trading on the Toronto Stock Exchange. MEG shares fell almost two per cent to $24.53. MEG's stock has been trading higher than the value of the bid, suggesting investors believe a better offer might come along. Analysts have said competing bids may come from oilsands majors like Cenovus Energy Inc., Canadian Natural Resources Ltd. or Imperial Oil Ltd. This report by The Canadian Press was first published May 30, 2025. Companies in this story: (TSX: MEG, TSX: SCR, TSX: CVE, TSX: CNQ, TSX: IMO) Lauren Krugel, The Canadian Press
BBC News
3 days ago
- Business
- BBC News
'Great news' for Rangers, new owners 'the right people to take club forward'
We asked for your thoughts of the takeover of Rangers by an American consortium and what the new owners' priorities should what some of you said:Mark: Hopefully this is the start of good things. Might take a few transfer windows to get everything in a strong position and hopefully see some stadium expansion as there's over 15,000 on the season ticket waiting New era. Lets hope they stick with a long-term manager with proper plans, values and understanding. We are a huge club which has been rudderless, appointing poor quality managers and worse player recruitment. I'm confident we will be back at the top soon. We were not a million miles away and we certainly have the measure of the others across the city. Sally: Great news for club and fans and investment welcome. Manager situation needs immediate attention and I would favour Davide Ancelotti. He has the potential to attract young footballing This has to be considered a positive step for the club, probably something that's been needed for a long time. Bringing in people with a proven track record promotes confidence, and that's something Rangers have badly missed. I think the fans should back this 100%.Luke: I'm absolutely delighted that it's taken place. I do feel that they're the right people to take the club forward, there's so much unrealised potential. I would like to see a calm and measured approach to upgrading the club and the playing staff. The other teams should rightly be worried, 49ers Enterprises have proved through their Leeds involvement that they don't muck around, so it's gonna be a lot of fun!Les: Great news. Rangers have been pretty stagnant since they got back to the Premiership via the lower leagues, playing second fiddle to Celtic. Hopefully new investment and a new manager will take them back to where they Hopefully we've now not only got the cash needed to completely rebuild the team to bring the title and trebles back to where they truly belong at Ibrox. But I'm also hoping we can get a really good player trading model in place so that we can start making a profit instead of all these huge annual losses. Big news and just thankful it's now over the line so we can bring a good manager and decent players in. Looking good for the future right now and I'm Very impressed with the opening message from Andrew Cavenagh. We have been through many false dawns before, but I believe this time those sentiments mean the club will move forward and end Celtic's domination.
