Blakes, Norton Rose Fulbright, McCarthy Tétrault, BLG, Dentons legal counsel this week
Deal: Ovintiv to expand Montney footprint with Paramount oil assets purchase
Value: $3.3 billion
The top deals this week include US-based Ovintiv’s $3.3 billion (US$2.3 billion) offer to acquire certain Montney oil assets from Paramount. Blakes, Norton Rose Fulbright, McCarthy Tétrault, BLG, and Dentons are among the legal counsel in this week’s roundup.
US shale producer Ovintiv Inc. has agreed to acquire certain Montney oil assets from Paramount Resources Ltd. in a deal valued at approximately $3.3 billion (US$2.3 billion). Upon closing, the acquisition will add approximately 109,000 net acres, around 80 percent undeveloped, and approximately 70 thousand barrels of oil equivalent per day to Ovintiv’s portfolio.
Blake, Cassels & Graydon LLP is serving as Ovintiv's legal counsel on the Montney transaction, with J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC as financial advisors.
Norton Rose Fulbright Canada LLP is serving as legal counsel to Paramount, with BMO Capital Markets and Peters & Co. Limited as the lead financial advisors.
“We are acquiring top decile rate of return assets in the heart of the Montney oil window,” said Ovintiv President and CEO Brendan McCracken. “This acquisition is the targeted result of our in-depth technical and commercial analysis of the basin to identify the highest value undeveloped oil resource. The acquired assets have demonstrated leading well performance and are a natural fit with our operating advantage and our existing acreage. The assets come with ample midstream capacity, unlocking optionality for mid-single digit growth in our Montney oil and condensate volumes. The Montney is the second largest undeveloped oil resource in North America, and with this acquisition, we have solidified our position as the premier operator in the play.”
“We believe this transaction provides an opportunity to realize compelling value for the assets while retaining a significant inventory of growth opportunities across our land base,” said Paramount President and CEO Jim Riddell. “On completion of the transaction, we will be well positioned to continue the development of our high-growth Duvernay assets, advance a number of our exciting early-stage assets and capitalize on new opportunities. We intend to use a portion of the proceeds of the transaction to provide a meaningful return to our shareholders.”
Ovintiv provided a $100 million deposit as part of the agreement, which may be forfeited to Paramount if the deal is not completed.
The deal is expected to close in the first quarter of 2025, subject to regulatory approvals and customary closing conditions.
Saskatchewan-based Cameco Corporation, one of the largest uranium producers in the world, announced an at-the-market (ATM) equity offering for common shares, aiming to raise approximately $695 million (US$500 million).
The shares are to be sold through TD Securities Inc., CIBC World Markets Inc., and Scotia Capital Inc. as Canadian agents. They are joined by U.S. affiliates TD Securities (USA) LLC, CIBC World Markets Corp., and Scotia Capital (USA) Inc.
McCarthy Tétrault LLP and Covington & Burling LLP are serving as Canadian and US legal counsel, respectively, to Cameco.
Borden Ladner Gervais LLP (BLG) and Skadden, Arps, Slate, Meagher & Flom are serving as Canadian and US legal counsel, respectively, to the agents.
Proceeds are allocated for development opportunities, acquisitions, debt repayment, or general corporate purposes.
The offering is set to close by December 12, 2026, or earlier if all shares are sold.
Mattr Corp., a Toronto-based technology company formerly known as Shawcor Ltd., agreed to acquire AmerCable Incorporated, a US-based manufacturer of engineered wire and cable solutions, from Nexans USA Inc. for approximately $390 million (US$280 million).
Dentons LLP is serving as legal counsel to Mattr, with TD Securities Inc. as the financial advisor.
Mattr CEO Mike Reeves said, “AmerCable is a highly respected North American cabling company with exceptional brand and product development capabilities. We plan to grow the business further and expand its successful operations.”
“This agreement aligns with our strategy to refocus on Electrification and simplify the group,” said Nexans CEO Christopher Guérin. “Acquired in 2012, AmerCable has been a key pillar of our Industry & Solutions portfolio. The business went through a significant transformation over the last decade and in the last three years, with the implementation of our SHIFT program, we have brought the business to its full potential and full capacity. It was therefore the appropriate time to look for a new owner that could invest and grow the business further as our cycle was successfully completed.”
The deal is expected to close by the end of 2024, subject to regulatory approvals and customary closing conditions.
Neo Financial Technologies Inc., a Calgary-based digital bank, has announced a $360 million Series D fundraising round, consisting of $110 million of equity and $250 million of debt.
This round of funding includes investments from some of the biggest names in the Canadian technology sector, including Shopify CEO and founder Tobi Lütke, Slack founder and former CEO Stewart Butterfield, Roblox CEO David Baszucki, and PointClickCare co-founder and Executive Chair Mike Wessinger. Existing investors, including Valar Ventures, Golden Ventures, Afore Capital, and Thomvest Ventures, also participated in this round.
“Neo Financial’s growth over the last 4 years reflects Canadians’ strong demand for alternatives to traditional banking,” said Neo Financial co-founder and CEO Andrew Chau. “We’re building time and money-saving financial products that will help Canadians for decades to come. Despite being in the lowest period of venture funding that fintech has seen in the last 5 years, we’ve been able to raise one of the largest fintech funding rounds globally this year.”
Shopify CEO and founder Tobi Lütke said, “We need a culture of going for gold in Canada and this is precisely what the team at Neo Financial has. Their growth is proof that it’s possible to build world-class products here in Canada.”
Slack founder and former CEO Stewart Butterfield said, “Investing in Neo Financial was about supporting a team that deeply understands Canadians and is relentless in improving their financial experience. They’re building a solution that’s more human-centered than anything we’ve seen in fintech.”
Roblox CEO David Baszucki said, “As an investor, I seek out opportunities where companies are pushing boundaries and challenging the status quo to unlock potential – Neo Financial is giving people new tools to unlock financial opportunities.”
PointClickCare co-founder and Executive Chair Mike Wessinger said, “Neo Financial has the drive and the vision to push Canadian innovation forward. Supporting their growth is about showing the world what Canada can do in fintech – not just following trends, but setting them.”
