Chrystia Freeland welcomes $2-billion partnership of Canada Growth Fund, Strathcona Resources

Deal: Canada Growth Fund, Strathcona Resources to secure the country’s carbon capture leadership

Value: $2 billion

Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, welcomed the announcement of the $2-billion partnership between Canada Growth Fund and Strathcona Resources. Stikeman Elliott advised Canada Growth Fund and Blakes represented Strathcona. Also serving as legal counsel in this deals roundup are Miller Thomson, WeirFoulds, Torys, and Goodmans, among others.

Canada Growth Fund, Strathcona Resources partners in $2-billion carbon capture investment 

The Canada Growth Fund (CGF) and Strathcona Resources, the country’s fifth-largest oil producer, have agreed to invest up to $2 billion combined to build a first-of-its-kind carbon capture and sequestration (CCS) infrastructure on Strathcona's steam-assisted gravity drainage oil sands facilities across Saskatchewan and Alberta.

Stikeman Elliott LLP and Sproule International Limited acted as advisors to CGF while Blake, Cassels & Graydon LLP served as legal counsel to Strathcona.

Deputy Prime Minister and Minister of Finance, the Honourable Chrystia Freeland, welcomed the announcement in a press release by the Department of Finance Canada.

“This $2 billion partnership between our Canada Growth Fund and Strathcona Resources is proof that our economic plan is working—it is growing the economy, creating good-paying jobs, and keeping Canada on track to reach net-zero by 2050,” the Deputy Prime Minister said. “This partnership, made possible by our Carbon Capture, Utilization, and Storage investment tax credit, will build one of the world’s lowest-emission oil facilities, ensuring Canada’s resource sector remains competitive for generations to come.”

“This partnership is a breakthrough in Canada's journey towards decarbonizing the oil and gas sector,” said CGF Investment Management President and CEO Patrick Charbonneau.

“Alongside CGF, Strathcona intends to advance Canada's first CCS projects in the heavy oil sector. Given the economic and environmental importance of the oil and gas sector–which represents 9 percent of Canada's nominal GDP and 31 percent of its emissions–Strathcona's leadership is essential and worth celebrating.”

“Strathcona is proud to be leading the Canadian oil and gas sector towards reducing our carbon intensity, prudently and profitably,” said Strathcona Executive Chairman Adam Waterous. “We hope this innovative partnership with CGF will serve as a template for other producers and serve notice to the global oil and gas industry that Canada not only has one of the largest and most profitable oil resources in the world, but soon through these CCS projects, on a path toward becoming the least carbon-intensive.”

Canada’s largest university press UTP deepens stake in legal publishing via Irwin Law assets buy

University of Toronto Press (UTP), Canada’s largest university press and leading academic publisher, has acquired the assets of Irwin Law, in a deal that marks UTP’s broader investment in legal publishing.

An independent legal publisher of law materials for professionals, students, and general audiences, Irwin’s catalogue encompasses a deep backlist and current frontlist of award-winning offerings, including the Essentials of Canadian Law series.

Miller Thomson LLP partner Nicole D’Aoust and Cooper Media Law partner Ian Cooper served as legal counsel to UTP. WeirFoulds LLP served as legal counsel to Irwan Law with a team led by William Chang.

“Irwin Law has built a strong reputation for care and dedication to authors and published works – we look forward to furthering the long-standing impact by increasing access to Irwin books and catalogues,” said UTP Publishing VP Antonia Pop. “It is an exciting step forward, combining Irwin’s lists with the strength of UTP’s existing legal offerings sets the stage for future growth in a critical area of increasing relevance.”

"Irwin has been a foundation of legal publishing for 30 years, and we pride ourselves on producing modern, lively, and interesting books—it is something we are confident will be carried through with UTP,” said Irwin Law Founding Publisher Jeffrey Miller. “UTP’s commitment to excellence and innovation makes it the perfect home for our authors and our lists.”

Maple Leaf Food splits, spins off pork business

Maple Leaf Foods Inc. announced that it will be separating into two independent public companies in a strategic move to drive growth. Maple Leaf Foods will continue its commitment to sustainable food manufacturing in Canada, while the new pork company will operate under a yet-to-be-announced name.

The separation has been approved by the Board of Directors of Maple Leaf Foods, on the recommendation of a Special Committee of the Board, composed entirely of independent directors, and has the full support of Maple Leaf Foods’ largest and controlling shareholder, McCain Capital Inc. and the McCain family.

BMO Capital Markets and Centerview Partners are serving as financial advisors to Maple Leaf Foods, and Blake, Cassels & Graydon LLP is serving as legal counsel. Torys LLP is serving as legal counsel to the Special Committee. Goodmans LLP is acting for McCain Capital Inc. and the McCain family.

Upon deal completion, Maple Leaf Foods will retain a 19.9 percent ownership in the new Pork Company and the two companies will establish a secure pork supply agreement.

Maple Leaf Foods will continue to be led by Curtis Frank, President and CEO; Adam Grogan, President and COO; and David Smales, CFO.  The new Pork Company will go forward with a management team led by Dennis Organ, incoming CEO of the new Pork Company. 

“Today’s announcement is a pivotal next step in Maple Leaf Foods’ journey to becoming a globally admired, brand-led consumer packaged goods powerhouse,” said Frank. “Global demand for sustainably produced protein is expected to grow significantly, and we have built the right platform to unlock stakeholder value as we meet that demand. With our significant capital projects complete, we are harvesting the benefits of these investments, with margin expansion already underway and expected to continue. Now is the right time for this transaction, which positions Maple Leaf Foods for long-term success and brings us closer to our goal of being the most sustainable protein company on Earth.”

“The new Pork Company will offer investors direct access to one of the world’s foremost, premium value-added pork producers with a clear vision to produce meat the right way while delivering industry-leading financial performance,” said Organ. “We are already setting the standard for best practices in sustainability, animal welfare, and high-quality pork production. We have seen positive momentum in the business in recent quarters as pork markets continue to normalize following several years of material disruption.”

The deal is expected to be completed in 2025.