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TORONTO, Nov 29 (Reuters) - Canadian regulators will review the sale of HSBC's (HSBA.L) business in Canada to Royal Bank of Canada (RY.TO) for C$13.5 billion ($10 billion) in cash, the Canadian government's finance ministry said on Tuesday. The Competition Bureau, under the Competition Act, will also review the transaction," the finance ministry said in a statement. RBC's purchase price reflects a 30% premium to the value some analysts had attributed to HSBC's Canada business. Analysts had valued HSBC's Canada business in the range of C$8 billion to C$10 billion. "The Minister of Finance's decision will be informed by all required regulatory review processes," it added.

The transaction is also fraught with regulatory risks, analysts said, though RBC argues that HSBC's Canada business accounts for just 2% of Canadian banking market share. The finance minister has the authority to impose any terms and conditions, the finance department said in a statement. "This regulatory assessment isn't likely to be completed for some time," Calvin Goldman, former commissioner of Canada's competition bureau, told Reuters, referring to the latest deal. QUICK MOVEDespite the expected regulatory risks, RBC was keen to move quickly. RBC is paying 9.4 times HSBC's 2024 adjusted earnings, which KBW analysts said was a steep price, though offset by savings potentials.

Nov 28 (Reuters) - Euro zone government bond yields were higher on Monday after rare protests in China over the country's strict zero-COVID policies clouded the outlook for global growth and inflation. "The market is more concerned about the impact on inflation than the impact on growth," he added. Germany's 10-year government bond yield was up 4 basis points (bps) at 2.008%, after rising 12 bps on Friday. The gap between the 2-year and 10-year government bond yields rose to -20 bps. Italy's 10-year yield rose 8 bps to 3.94% pushing the closely watched spread between Italian and German 10-year yields wider by 5 bps to 191 bps.

Nov 27 (Reuters) - Top Canadian banks are expected to post a decline in fourth-quarter profits as choppy markets hurt wealth management and a slow deal pipeline dents income from investment banking, offsetting expected gains from business loans. On average, profit for the Big Six banks are expected to drop 4% from last year, hurt by lower investment banking activity. Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO), which have the largest capital markets businesses, are expected to see the biggest hit to profits. "Business lending was particularly strong and aided by strength in balances outside of Canada," KBW analysts Mike Rizvanovic and Abhilash Shashidharan said. National Bank of Canada (NA.TO) and Toronto-Dominion Bank (TD.TO), also among the Big Six, will report earnings on Wednesday and Friday, respectively.

Nov 24 (Reuters) - Manulife Financial Corp (MFC.TO) will outsource its property operations in Canada to focus on its entrepreneurial investment management unit, Canada's biggest life insurer said Thursday. The change to a new structure will result in Manulife Investment Management, which overseas the real estate portfolio, shedding 50 jobs, two sources familiar with the matter told Reuters on Thursday. Among other financial services companies, Canada's biggest lender, Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO) have recently cut jobs in the United States. Manulife Investment Management's real estate arm uses a pool of capital to invest in real estate in 29 cities across the United States, Asia and Canada. According to its annual report, the insurer had about C$13.2 billion ($9.90 billion) worth of real estate investments in 2021.

In a surprise move, the Canadian government said earlier this month that it had decided to cease issuance of real return bonds (RRBs), citing low demand. That makes them an expensive form of financing for the government, but cost should not be the only consideration, investors say. The median allocation by defined benefit pension plans, a major category, to RRBs was 5.2% in 2021, data covering members of the Pension Investment Association of Canada (PIAC) shows. U.S. Treasury Inflation-Protected Securities (TIPS) could act as a proxy but are not an exact hedge against Canadian inflation. Breakeven rates are the difference between yields on nominal and real return bonds.

☆ Ontario Pension says any loss from FTX investment to have limited impact
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: 1 min

TORONTO, Nov 10 (Reuters) - The Ontario Teachers Pension Plan (OTPP) said on Thursday it had invested a total of $95 million to the troubled cryptocurrency exchange FTX and any financial loss from the exposure will have limited impact on the pension plan. OTPP, Canada's No. 3 pension fund, said it made the investments in FTX International and FTX U.S. exchange through its Teachers' Venture Growth fund, representing less than 0.05% of the pension fund's total net assets, it said. FTX is scrambling to raise funds investors and rivals as Chief Executive Sam Bankman-Fried urgently seeks to save the cryptocurrency exchange that has been buffeted by a rush of customer withdrawals. read moreReporting by Divya RajagopalOur Standards: The Thomson Reuters Trust Principles.

☆ Canada's PSP fund to double issuance of long-term green bonds
▼ + stars: | 2022-11-10 | by ( ) www.reuters.com time to read: +1 min

TORONTO, Nov 10 (Reuters) - Canada’s Public Sector Pension Investment Board (PSP Investments) aims to more than double the C$1 billion ($749 million) value of sustainable bond issuance by 2026, an official at the pension fund told Reuters on Thursday. The pension scheme, which manages C$230.5 billion in assets, issued its first-ever green bond in February this year as part of its goal to reach net-zero emissions. Several other pensions including Ontario Teachers' Pension Plan (OTPP), Caisse de dépôt et placement du Québec and the Canada Pension Plan Investment Board (CPPIB), have also issued green bonds. Neither OTPP, CPPIB nor Caisse have set targets for green bond issuance. PSP, Canada's fifth-largest pension investment manager, also increased its exposure to green assets by C$6.12 billion to C$46.5 billion in 2022, it said in a report released on Thursday.

☆ Rogers-Shaw decision by Dec unlikely, tribunal head says as hearing starts
▼ + stars: | 2022-11-07 | by ( Divya Rajagopal | ) www.reuters.com time to read: +4 min

After a series of failed settlement talks, the battle between Rogers-Shaw and the antitrust agency kicked off in Canada's Competition Tribunal on Monday, which is expected to last at least four weeks. Rogers offered to sell Shaw's Freedom Mobile business to Quebecor Inc (QBRb.TO) to overcome competition bureau concerns, which the bureau rejected. It wanted the tribunal to reject the divestiture as a viable remedy and also issue an order blocking the Rogers-Shaw merger. But the initial rally in shares of Rogers and Shaw reversed after the competition bureau subsequently made clear it will pursue the litigation. Rogers-Shaw and Quebecor are racing against time to close the deal, as a delay poses financial risks, according to arguments made by the lawyers of Rogers-Shaw at the tribunal during a public hearing in late October.

☆ Sun Life profit beats estimates with strong insurance growth in U.S., Asia
▼ + stars: | 2022-11-02 | by ( Divya Rajagopal | ) www.reuters.com time to read: 1 min

TORONTO, Nov 2 (Reuters) - Sun Life Financial Inc (SLF.TO), Canada's second-biggest life insurer, on Wednesday beat analysts estimates for its third-quarter core profit, as higher insurance sales in the United States and Asia helped offset declining revenue from its wealth management business. Underlying profit rose 5% from a year ago to C$949 million ($692.1 million) or C$1.62 per share in the three months ending Sept 30 versus consensus estimates to C$1.47. ($1 = 1.3711 Canadian dollars)Reporting by Divya Rajagopal; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ Sun Life profit beats estimates even as wealth business slumps with markets
▼ + stars: | 2022-11-02 | by ( Divya Rajagopal | ) www.reuters.com time to read: +1 min

TORONTO, Nov 2 (Reuters) - Sun Life Financial Inc (SLF.TO), Canada's second-biggest life insurer, on Wednesday posted third-quarter profit that beat analyst estimates, as higher insurance sales in the United States and Asia helped offset declining revenue from its wealth management business. Underlying profit rose 5% from a year ago to C$949 million ($692.1 million) or C$1.62 per share in the three months ending Sept 30 versus consensus estimates to C$1.47. "Overall insurance sales across our businesses were strong, reflecting the increased importance clients are placing on protection and health," Kevin Strain, Sun Life CEO and president, said in a statement. Market volatility sparked by sharp rise in interest rates globally dented Sun Life's wealth business, resulting in a 19% drop in core profit from that operation. Sun Life has been expanding overseas to diversify its business mix and the latest quarter earnings benefited from recent deals, Strain added.

☆ Rogers, Shaw say deal mediation with Canada's competition bureau failed
▼ + stars: | 2022-10-27 | by ( Divya Rajagopal | ) www.reuters.com time to read: 1 min

TORONTO, Oct 27 (Reuters) - The mediation between Rogers Communications Inc (RCIb.TO), Shaw Communications (SJRb.TO) and Canada's competition bureau over the companies' C$20 billion merger failed on Thursday, as the parties did not agree on the terms put forward by the tribunal. "We are disappointed with this outcome and believe that litigation is both unnecessary and harmful to competition. The Bureau's unwillingness to meaningfully engage unduly delays lower wireless prices for Canadian consumers," the companies said in a joint statement. The move comes days after Canada's industry minister put forward terms for the merger to proceed. read moreReporting by Divya Rajagopal and Maria Ponnezhath; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

☆ Rogers, Shaw deal mediation with Canada's competition bureau fails
▼ + stars: | 2022-10-27 | by ( Divya Rajagopal | ) www.reuters.com time to read: +1 min

TORONTO, Oct 27 (Reuters) - Rogers Communications Inc (RCIb.TO) and Shaw Communications (SJRb.TO) have failed to mediate their differences with Canada's competition bureau over their C$20 billion ($14.75 billion) merger, the companies said on Thursday. "The mediation did not yield a negotiated settlement," the companies said in a joint statement, adding that they remained committed to completing the transactions. The government's recent intervention had raised hopes that Canada would approve the merger deal, which has been blocked on competition concerns. Rogers declined to comment beyond the statement, while Shaw and the bureau did not immediately respond to requests for comment. ($1 = 1.3560 Canadian dollars)Reporting by Divya Rajagopal and Maria Ponnezhath; Editing by Devika Syamnath and Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

Oct 25 (Reuters) - Canada on Tuesday imposed conditions on Rogers Communications' (RCIb.TO) proposed remedy to overcome competition bureau concerns about Rogers' planned C$20 billion ($14.7 billion) purchase of rival Shaw Communications (SJRb.TO). Rogers has offered to sell Shaw's Freedom Mobile unit to Quebecor Inc's (QBRb.TO) Videotron to allay the antitrust bureau's concerns over reduced competition in the Canadian market following the Shaw deal. Canadian Industry Minister François-Philippe Champagne told a media conference on Tuesday that Videotron would be required to hold the Freedom Mobile unit for at least 10 years. Champagne also said the government has formally rejected the wholesale transfer of wireless spectrum license from Shaw to Rogers under the original deal. Canada Competition Bureau has said the sale of Freedom Mobile to Videotron is not sufficient to overcome its concerns about market concentration.

Rogers' launched the deal to buy Shaw in March 2021, but the competition bureau blocked it saying it would lessen competition in a market which has among the highest wireless prices in the world. He said since the competition bureau sits under the minister, it is a signal to the bureau to settle. The competition bureau did not reply to an email seeking comment. Champagne's announcement comes as the companies start a two-day mediation process starting Thursday at the Competition Tribunal. Competition bureau has said the sale of Freedom Mobile to Quebecor is not sufficient to overcome its concerns about market concentration.

Last month, it unveiled plans to spin off its Canadian oil sands assets into a new publicly traded company, which surprised many industry watchers. McCrea expects the recent trend of takeovers of private Canadian oil companies by larger companies to continue rather than the IPO route. The last time a new Canadian energy listing appeared on the TSX was in January when Calgary-based Kiwetinohk Energy Corp (KEC.TO) shares started trading. read moreNow, energy stocks have become a refuge for investors facing a sell-off in high growth sectors. Some energy investors welcomed the idea of more Canadian oil and gas listings.

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