Justice Minister Peter MacKay stands in the House of Commons during Question Period on Parliament Hill, Wednesday, June 17, 2015 in Ottawa.FRED CHARTRAND/The Canadian Press
DEAL OF THE DAY:
Johnson Controls buys Tyco
In a deal valued at $16.5-billion (U.S.) , the U.S.-based manufacturer of car batteries and heating and ventilation equipment is acquiring its Ireland-based counterpart. The driving force behind the bid? You guessed it: A lower tax bill.
The combined company will be able to keep an estimated $150-million a year away from the tax man simply by putting down roots in the relatively tax-friendly domicile of Cork, Ireland.
It's the latest in a rising tide of so-called tax-inversion deals. In November, Pfizer and Allergan merged in a mammoth $160-billion inversion – the largest ever. And just last week, a $2.7-billion deal between Canada's Progressive Waste Solutions and Texas-based Waste Connections Inc. prompted The Globe and Mail's Tim Kiladze to ask: What's in it for Canada?
On Monday, U.S. presidential hopeful Hillary Clinton called such deals "outrageous" and vowed to put an end to them if she wins the White House.
Here's a roundup of various thoughts on the Johnson-Tyco tie-up from different corners of the Web:
– The Financial Times sets the stage with a good explainer of the political debate on tax inversions.
– Reuters' Kevin Allison on why this deal is insured against that political debate.
– If you don't feel like reading, here's a Bloomberg video on why the deal makes sense.
– Here's a chart that shows the merger isn't troubling Johnson's creditors.
– The U.S. Congressional Budget Office on the other hand? A bit troubled.
MERGERS AND ACQUISITIONS
Bridgepoint nears portfolio sale: Bloomberg
Bridgepoint, a U.K.-based private equity firm, is near a deal to sell a portfolio of its companies worth a combined €2-billion ($3-billion) to a group backed by Harbourvest Partners, said people familiar with the matter. Story
National General to acquire Century National
National General Holdings Corp. announced an agreement to acquire Century-National Insurance Co. in a deal valued at $315-million (U.S.). Press release
ON THE MOVE
Scotiabank adds tech talent to board
Canadian banks are adding technology talent to their boards of directors as they become increasingly serious about the threats and opportunities posed by financial technology, or fintech, firms.
Bank of Nova Scotia announced on Monday that it had appointed to its board Scott Bonham, a Canadian entrepreneur and venture capitalist with "deep connections" to Silicon Valley. Story
Wetston's 'new experiences'
Former Ontario Securities Commission chair Howard Wetston has been appointed a senior fellow at the C.D. Howe Institute, a Toronto-based research organization.
Mr. Wetston, 68, left the OSC in November after a six-year term heading Canada's largest securities regulator, and said in an interview at the time that he wanted to find "new experiences." Story
MacKay lands at Baker & McKenzie
While his name has been floated as a possible federal Conservative leadership contender, former justice minister Peter MacKay says he is now focused on his new job as a partner with U.S.-based global law firm Baker & McKenzie.
On Monday, Baker & McKenzie announced that it was bringing on the former cabinet minister in its Toronto office. However, in an interview, Mr. MacKay would not categorically rule out a run for the leadership of his party, which is to select a permanent successor to Stephen Harper in May, 2017. Story
ANALYSIS AND INSIGHT
TD's stubborn hold on insurance
The challenging business of insuring homes and cars just got lonelier for Toronto-Dominion Bank.
TD will be the last of the major lenders still underwriting property and casualty policies, now that Royal Bank of Canada has struck a $582-million deal with Aviva Canada to part ways with its home and auto insurance business. National Bank of Canada is still technically in the game, but it doesn't crack the top-20 providers by market share. TD is in the top five. Story
Fitch rates the banks
If investors are nervous about how Canadian banks will navigate a rough domestic economy driven by depressed oil prices, they might get some comfort from a relatively upbeat Fitch Ratings review that reaffirmed the banks' solid fundamentals and consistent performance – for now. Story
Know of any coming deals we should cover? Have suggestions for making the Daily Deal Roundup more useful? E-mail us at deals@globeandmail.com.