Canadian oil and gas producer Cenovus Energy CVE-T +4.35%increase said on Friday it will buy MEG Energy
N/A in a cash-and-stock deal valued at $7.9-billion, including debt, to create one of the largest oil sands companies in Canada.
The two companies, which will combine MEG’s Christina Lake oil sands operations in Alberta with Cenovus’ neighboring assets, will have a combined oil sands production of over 720,000 barrels per day.
MEG Energy in June rejected a hostile takeover offer from Strathcona Resources, calling the bid inadequate and not in the best interest of its shareholders, and launched a strategic review to explore better alternatives.
James McFarland, chairman of MEG Energy, said on Friday its board and a special committee have “concluded that the proposed transaction with Cenovus represents the best strategic alternative” after considering Strathcona’s unsolicited offer and engaging with multiple parties.
Strathcona Resources did not immediately respond to a Reuters request for comment on whether it was considering an enhanced bid or other options in response to Cenovus’ offer.
Cenovus’ offer of $27.25 per share gives MEG an equity value of about $6.93-billion, according to Reuters calculations. It represents a 27.9-per-cent premium to MEG’s last close before Strathcona launched an unsolicited bid in May.
Under the deal, MEG shareholders will receive 75 per cent of the consideration in cash and 25 per cent in Cenovus shares.
The deal, approved by MEG’s board, is expected to close early in the fourth quarter of 2025.
The U.S. Commerce Department on Tuesday said it is hiking steel and aluminum tariffs on more than 400 products including wind turbines, mobile cranes, appliances, bulldozers and other heavy equipment, along with railcars, motorcycles, marine engines, furniture and hundreds of other products.
The department said 407 product categories are being added to the list of “derivative” steel and aluminum products covered by sectoral tariffs, with a 50 per-cent tariff on any steel and aluminum content of these products plus the country rate on the non-steel and non-aluminum content.
Evercore ISI said in a research note the move covers more than 400 product codes representing over US$200-billion in imports last year and estimates it will raise the overall effective tariff rate by around 1 percentage point.
The department is also adding imported parts for automotive exhaust systems and electrical steel needed for electric vehicles to the new tariffs as well as components for buses, air conditioners as well as appliances including refrigerators, freezers and dryers.
A group of foreign automakers had urged the department not to add the parts, saying the U.S. does not have the domestic capacity to handle current demand.
Tesla unsuccessfully asked the Commerce Department to reject a request to add steel products used in electric vehicle motors and wind turbines, saying there was no available U.S. capacity to produce steel for use in the drive unit of EVs.
The new tariffs take effect immediately and also cover compressors and pumps and the metal in imported cosmetics and other personal care packaging like aerosol cans.
“Today’s action expands the reach of the steel and aluminum tariffs and shuts down avenues for circumvention – supporting the continued revitalization of the American steel and aluminum industries,” said Under Secretary of Commerce for Industry and Security Jeffrey Kessler.
Steelmakers including Cleveland Cliffs, Nucor and others had petitioned the administration to expand the tariffs to include additional steel and aluminum auto parts.
Canada’sinflation rate fell by slightly more than expected in July to 1.7 per cent, which economists say could pave the way for the Bank of Canada to resume cutting interest rates.
Statistics Canada’s consumer price index report on Tuesday said the deceleration from 1.9 per cent in June was led by a decline in gasoline prices, reflecting the removal of the consumer carbon price in the spring.
Meanwhile, grocery prices rose at a faster pace of 3.4 per cent annually. Shelter costs increased by 3 per cent from a year ago, fuelled by a 5.1-per-cent rise in rent and a more modest decline in residential natural gas prices compared with June.
Financial markets reacted to the latest inflation data by increasing the odds of an interest rate cut in September to 36 per cent from 26 per cent the day before, according to data from Bloomberg.
Economists also responded positively to the report, noting that the slowdown could lead to an interest rate cut later this year.
“An easing in inflationary pressures during July means that we have successfully cleared one obstacle on the path towards a potential September interest rate cut,” said CIBC senior economist Andrew Grantham in a client note.
The Bank of Canada has held its key interest rate steady at 2.75 per centduring its last three announcements, noting the economy has held up relatively well despite the impact ofU.S. tariffs. It’s also been somewhat concerned by recent price pressures, which could worsen if the trade conflict escalates. (Businesses would likely pass down higher costs from tariffs on to consumers.)
U.S. tariffs have stalled economic growth in Canada as exports take a hit, but the economy has notgone into freefall.
The USMCA trade pact has allowed a significant chunk of goods to continue crossing the southern border tariff-free, enabling many businesses to avoid the steep levies U.S. President Donald Trump has imposed globally.
Modelling by the Bank of Canada suggests that if the tariff situation doesn’t change by much, Canada will likely avoid a recession and inflation will remain around the 2-per-cent target.
However, Governor Tiff Macklem has left the door open to rate cuts if the economy stalls and inflation remains at bay. Its recent summary of deliberations detailing discussions ahead of its July interest rate decision suggests that members of the governing council are split on whether more relief is needed.
Economists on Bay Street are somewhat more convinced that an interest rate reduction will be needed as slack continues to build in the economy, which is expected to offset some price pressures.
To gauge underlying price pressures, the Bank of Canada keeps a close eye on its preferred core measures of inflation, which did not ease in July, continuing to hover around 3 per cent annually.
However, BMO chief economist Douglas Porter noted that the three-month annualized trend for those measures eased to 2.4 per cent in July.
“If that more recent pace in core is maintained, and the economy remains soft, we believe that will eventually set the stage for BoC cuts,” Mr. Porter said in a client note.
The central bank’s next interest rate announcement is scheduled for Sept. 17.
(8:15 a.m. ET) Canadian housing starts for July. The Street is projecting an annualized rate decline of 4.0 per cent.
(8:30 a.m. ET) Canada’s household and mortgage credit for June.
(8:30 a.m. ET) Canada’s international securities transactions for June.
(10 a.m. ET) U.S. NAHB Housing Market Index for August.
Earnings include: BHP Group Ltd.; Palo Alto Networks Inc.
Tuesday August 19
(8:30 a.m. ET) Canadian CPI for July. Consensus is a month-over-month increase of 0.4 per cent and year-over-year rise of 1.8 per cent.
(8:30 a.m. ET) Canada’s construction investment for June.
(8:30 a.m. ET) U.S. housing starts for July. The Street is projecting an annualized rate decline of 2.4 per cent.
(8:30 a.m. ET) U.S. building permots for July. Consensus is a decline of 0.4 per cent on an annualized rate basis.
Earnings include: Home Depot Inc.
Wednesday August 20
Japan trade balance and core machine orders
Euro zone CPI
(8:30 a.m. ET) Canada’s New Housing Price Index for July. Estimates are a month-over-month decline of 0.2 per cent and 1.5-per-cent drop year-over-year.
(2 p.m. ET) U.S. Fed minutes from July 29-30 meeting are released.
Earnings include: Analog Devices Inc.; Baidu Inc.; Estee Lauder Companies Inc.; Lowe’s Companies Inc.; Target Corp.; TJX Companies Inc.
Thursday August 21
Japan and Europe PMI
(8:30 a.m. ET) Canada’s industrial product and raw materials price indexes for July.
(8:30 a.m. ET) U.S. initial jobless claims for week of Aug. 16. Estimate is 226,000, up 2,000 from the previous week.
(9:45 a.m. ET) U.S. S&P Global PMIs for August.
(10 a.m. ET) U.S. leading indicator for July.
(10 a.m. ET) U.S. existing home sales for July.
Also: Jackson Hole Economic Policy Symposium begins (through Saturday)
Earnings include: Dollar Tree Inc.; Intuit Inc.; Ross Stores Inc.; Walmart Inc.; Workday Inc.
Friday August 22
Japan CPI
Germany GDP
(8:30 a.m. ET) Canadian retail sales for June. The Street expects a month-over-month rise of 1.1 per cent.
(10 a.m. ET) U.S. Fed chair Jerome Powell speaks on the Economic Outlook and Framework Review at the Jackson Hole Symposium.
(10:30 a.m. ET) Bank of Canada Senior Loan Officer Survey for Q2.
The main sticking points of contention between Alberta and the Canadian federal government’s economic policies in 2025 revolve around these key issues:
1. Trade and Tariff Policy
Both Alberta and the federal government are grappling with the fallout of a Canada-U.S. trade dispute. The high risk of increased tariffs (10% on energy products and 15% on other goods) imposed by the U.S., and subsequent Canadian retaliation, are expected to dampen Alberta’s economic growth and create uncertainty for provincial revenues.
Alberta has criticized the federal approach to both U.S. trade negotiations and the retaliatory tariffs, arguing they disproportionately hurt Alberta’s energy sector, which is critical to the province’s economy.
2. Personal Income Taxes and Fiscal Approach
Alberta has introduced significant personal income tax cuts (a new 8% bracket for income under $60,000), fulfilling a provincial promise to ease the cost of living and provide relief to households. The federal government, however, has not matched these tax cuts and often emphasizes more cautious fiscal stimulus and redistribution spending.
Alberta’s tax cut has led to rising provincial deficits (projected at $5.2 billion for 2025/26 and totaling $9.6 billion over 3 years), clashing with Ottawa’s pressure for fiscal prudence and sustainable spending.
3. Spending Priorities & Social Investments
Alberta’s budget has drawn criticism for large increases in medical spending and relatively little investment in affordable housing, childcare, and poverty reduction. The federal government often seeks greater spending on these areas, arguing for more balanced, inclusive economic policies.
There are complaints that Alberta’s policies favor older residents (through healthcare), neglecting the needs of younger citizens for housing and future prosperity.
4. Climate Policy
Alberta opposes the federal carbon pricing scheme and maintains more tolerant policies toward emissions within the province. There is ongoing resistance to federal environment and climate regulations, with Alberta favoring the interests of its energy sector over federal standards.
Alberta feels federal climate initiatives undermine provincial competitiveness and job stability, particularly in oil and gas.
5. Population Growth & Immigration
Alberta forecasts slower population growth due to the 2025-2027 Federal Immigration Levels Plan, which reduces net international migration, and believes this will hurt labor market and economic growth locally.
Alberta wants more autonomy and flexibility in immigration policy to support its economy’s needs.
In summary: The biggest sticking points are:
Handling of U.S. trade tensions and tariffs.
Divergence on tax policy and fiscal deficits.
Disagreements over social spending priorities and investment in younger generations.
Conflicts over climate action and energy sector regulation.
Differences in approach to immigration and population growth planning.
These ongoing fractures reflect Alberta’s preference for lower taxes, looser regulatory controls, and sector-specific support (especially oil/gas), versus the federal government’s emphasis on national standards, climate action, fiscal discipline, and broader redistribution.
1. United Nations Special Envoy for Climate Action and Finance
In December 2019, Mark Carney was appointed by UN Secretary-General António Guterres as the UN Special Envoy on Climate Action and Finance—a role central to galvanizing financial systems to support climate goals. Bank of England+15Wikipedia+15TIME+15
2. Founder of Glasgow Financial Alliance for Net Zero (GFANZ)
At COP26 in November 2021, Carney launched the GFANZ, a major global coalition of banks and asset managers committed to financing the transition to net-zero emissions. World Economic Forum+4Wikipedia+4The Guardian+4
3. Leading Advocate for Climate-Smart Finance
Carney frequently emphasized the need for private sector involvement in climate action:
In 2020, he publicly sided with Greta Thunberg over Trump on climate urgency, recognizing the danger of depleting the carbon budget and the importance of scientific insight. The Guardian
5. “Climate Radical” with Scientific Conviction
Carney is recognized not just for rhetoric but for bold, data-driven positions:
Analysts note his belief that most remaining fossil fuel reserves must remain unburned to prevent catastrophic overheating—highlighting the radical political and economic shifts implied. Covering Climate Now
6. Pragmatic Eco-Leadership as Prime Minister
Post‑2025 election, although climate wasn’t central to the campaign, Carney’s climate credentials remain strong. Observers expect his administration to:
Deploy tax incentives, transition bonds, and border carbon taxes to advance environmental progress. TIME
Summary Table
Role / Action
Impact on Climate Advocacy
UN Special Envoy (2019–2025)
Championing alignment of global finance with climate goals
GFANZ Founder (2021)
Leading coalition to mobilize banking sector toward net-zero emissions
Public Warnings as Governor
Highlighted climate risk as a systemic threat to financial stability
Support for Greta Thunberg (2020)
Bridged intergenerational climate advocacy and scientific urgency
Scientific Stance on Fossil Fuels
Called for most fossil reserves to stay unburned to prevent global overheating
Eco-Policy Leadership as PM
Advocating economic tools for climate action, even post-campaign shift
Mark Carney clearly blends high-impact global climate leadership with bold economic reasoning—positions that firmly establish him as a climate defender both in word and in action.
Record Production & Upstream Strength: Q2 2025 saw Imperial achieve its highest second-quarter upstream production in 30+ years, driven by better reliability and mine productivity at its Kearl asset (275,000 gross barrels/day). This strong operational performance is expected to boost results further in the latter half of 2025 as new projects like Leming SAGD ramp up.
Aggressive Shareholder Returns: The company returned C$367 million to shareholders via dividends and has ramped up its share repurchase program, with plans to complete it by year-end. Capital returns are a key draw for investors and demonstrate management’s confidence in ongoing strong cash generation.
Strategic Growth and Diversification: Imperial completed Canada’s largest renewable diesel facility at its Strathcona refinery in July 2025, aligning with lower-carbon energy policies and diversifying earnings. Further growth is expected from ongoing upgrades and expansions at major assets.
Improved Market Access: Expansion of the Trans Mountain pipeline has enabled higher petroleum product sales, increasing Imperial’s downstream margins and market reach.
Strong Balance Sheet and Cash Flow: Imperial maintains low debt and robust cash flows, giving it financial flexibility to withstand commodity price swings and fund growth. Q1 and Q2 reports highlighted rising profits, improved cash flow, and ongoing dividend increases (30 consecutive years of dividend growth).
Positive Analyst Sentiment & Technicals: Industry experts note Imperial’s breakout to new highs, premium valuation, and the stock’s resilience in a consolidating oil sector. With a long reserve life (25 years), steady buybacks, and quality management, investors see further upside if oil prices remain firm.
In summary, Imperial’s share price climb is fueled by record production, strong shareholder returns, growth in renewables, expanded market access, financial strength, and support from analysts and technical traders.
Strong Q2 2025 Earnings: Enbridge reported solid second-quarter results with GAAP earnings rising to $2.2 billion from $1.8 billion a year earlier, and adjusted EBITDA up 7% year-over-year to $4.6 billion. Distributable cash flow remained healthy at $2.9 billion, and management reaffirmed full-year guidance, demonstrating consistent financial performance that reassured investors.
Growth Projects and Capital Pipeline: The company sanctioned over $1.2 billion for the Clear Fork Solar project in Texas, supplying renewable power to Meta’s data centers under a long-term deal. Enbridge also progressed expansions of key natural gas assets and acquired stakes in new pipeline projects, contributing to a secured capital backlog exceeding $30 billion. This growth pipeline indicates strong future cash flow and earnings potential.
Dividend Increase and Yield Appeal: In March 2025, Enbridge raised its dividend by 3%, marking nearly 30 years of consecutive dividend growth. Currently, the dividend yield is around 5.8%, making it attractive for income-focused investors seeking reliable passive income during market volatility.
Stable Business Model and Diversification: Enbridge’s extensive energy infrastructure network, including natural gas utilities and growing renewable energy assets, provides stable cash flows and reduces risk exposure. This positions the company well for long-term growth despite energy sector volatility.
Market Sentiment & Valuation: With a market cap around $140 billion and earnings growth projections of 7% to 8.5%, analysts consider Enbridge reasonably valued, especially given its dividend income and defensive qualities. Its valuation and steady performance make it a favored stock in uncertain markets.
In summary, Enbridge’s recent share price increase reflects strong quarterly results, committed growth investments, dividend attractiveness, diversified and stable operations, and positive investor sentiment toward its valuation and income potential.
George Weston Ltd. says its second-quarter profit available to common shareholders amounted to $258 million, down from $400 million in the same quarter last year. The company, which holds large interests in Loblaw Cos. Ltd. and Choice Properties REIT, says the drop in profit from last year came in part because of a fair value adjustment of a trust unit liability. On an adjusted basis, the company says it earned $401 million or $3.06 per diluted share for the quarter, up from an adjusted profit of $394 million or $2.93 per diluted share a year ago. Analysts on average had expected an adjusted profit of $3.37 per diluted share, according to LSEG Data & Analytics. Revenue for the quarter totalled $14.82 billion, up from $14.09 billion in the same quarter last year. George Weston, whose shares stand at around $260 each, also announced a three-for-one stock split in a move it says will ensure common shares remain accessible to retail investors and employees, and to improve liquidity. This report by The Canadian Press was first published July 29, 2025. Companies in this story: (TSX:WN)
A stock split is a corporate action in which a company increases the number of its outstanding shares by issuing more shares to current shareholders in a set ratio (such as 2-for-1 or 3-for-1). While the number of shares you own increases, the price per share decreases proportionally, so the total value of your investment remains the same.
For example, in a 2-for-1 split, if you had 1 share worth $100 before the split, you would have 2 shares worth $50 each after the split. The company’s overall market value does not change—it just divides existing ownership into smaller, more affordable pieces.
Stock splits are usually done to:
Make shares more accessible to smaller investors by lowering the trading price per share
Increase liquidity (ease of buying and selling the stock)
Signal confidence by management in the company’s growth prospects
Overall, a stock split does not change the ownership percentage or the total value of shares held; it simply breaks shares into smaller units.
This action can sometimes boost demand by making the stock appear cheaper and more attractive to retail investors without affecting the company’s actual market capitalization.
Key points:
Number of shares increases
Price per share decreases proportionally
Total investment value unchanged
Market capitalization unchanged
Improves liquidity and accessibility
This concept is like cutting a cake into more slices—you get more pieces, but the total cake remains the same.
A stock split does not change the company’s market capitalization. This is because while the number of shares outstanding increases after a split, the price per share decreases proportionally. The total market value of the company remains the same, as market capitalization is calculated by multiplying the share price by the total number of shares.
For example, if a company with 1 million shares priced at $100 each does a 2-for-1 split:
Number of shares doubles to 2 million
Price per share halves to $50
Market capitalization stays at $100 million (2 million shares × $50 each)
Essentially, a stock split just divides the shares into smaller, more affordable units without changing the overall value of the company. It usually aims to improve stock liquidity and accessibility to investors, but the fundamental value and ownership structure remain unchanged.
In summary, market capitalization stays constant immediately after a stock split, as it is a purely cosmetic change to the number of shares and their price.
