Good morning!
The Westons have a different idea of a “pharmacy run”: the Canadian family behind Loblaw and Shoppers Drug Mart is nearing a mega-deal for Boots, potentially returning to British retail four years after selling Selfridges.
TD has a shopping list of its own: up to $10B of its shares. And dating app Grindr has agreed to buy Calgary-based healthcare company PurposeMed. October is opening with a busy Canadian deal tape!
Let’s get into it.
MARKETS 📈
All data as of yesterday’s market close at 4:00 PM ET
Recap: Softer-than-expected U.S. inflation initially lifted stocks and cut expectations for an October Fed hike, but gains faded as long-term Treasury yields kept climbing after fresh U.S. data showed stronger growth and hiring. The TSX fell (0.6%) as weakness in miners and financials outweighed energy gains, while oil rose on stalled U.S.-Iran talks and tightening U.S. fuel markets.
BRIEF OF THE DAY 💡
Canada’s Weston Family Nears US$9B Deal to Acquire Boots
The deal: The Canadian branch of the billionaire Weston family is reportedly in advanced talks to acquire Boots, the UK pharmacy and health & beauty retailer, from U.S. private equity firm Sycamore Partners for ~US$9B including debt.
The backstory: Sycamore acquired Boots’ then-parent company, Walgreens Boots Alliance, in a ~US$23.7B take-private in 2025, then split the group into five standalone businesses (including Boots) to facilitate potential asset sales.
For Sycamore: Selling Boots would allow the private equity investor to focus on turning around Walgreens’ U.S. pharmacy business, just over a year after the buyout.
💼 Why it matters: The Canadian Westons already control Loblaw Companies, which owns Shoppers Drug Mart and several other major retail banners. Buying Boots would expand the family’s pharmacy interests into the UK and mark its return to British retail after selling Selfridges Group for ~£4B in 2022.
HEADLINE RECAP 📰
In Canada
TD to buy back up to $10B in shares after OSFI lowered Big 6 capital requirements (FP)
Trump says “very bad” Canada is being “taught a little lesson” as trade action escalates (CBC)
Canada and EU set to advance LNG, subsea cable, and critical minerals initiatives at October summit (BBG)
Bank of Canada rate hikes seen capped at 2.75% as soft growth offsets inflation pressure, report says (G&M)
Canada has all the ingredients to be a data centre superpower, says report (FP)
AI agents attempted to breach Canadian government website (RTRS)
Panama government report recommends talks to reopen First Quantum’s Cobre Panamá copper mine; shares fall 15% amid confusion over eventual-closure language (BBG)
BSR REIT to pursue NYSE dual listing under “BSRT” ticker alongside its TSX listing (PR)
CVC DIF names former Morgan Stanley Infrastructure executive Chris Koski to newly created North America chair role, based in Toronto (PEH)
DEAL FLOW 🇨🇦 (Canadian parties highlighted)
M&A & Investments
Weston family: Canada’s billionaire Weston family, which controls Loblaw Companies, is reportedly nearing a deal to acquire Boots, the UK pharmacy and health & beauty retailer, from Sycamore Partners for ~US$9B including debt.
PurposeMed: The Calgary-based healthcare company (behind HIV-prevention telehealth platform Freddie) agreed to be acquired by Grindr for US$250M; existing investors include BDC’s Growth Venture Fund, Panache Ventures, and True North Fund.
CPP Investments agreed to sell its 10.5% stake in WestConnex and 25% stake in NorthWestern Roads Group (which owns Westlink M7 and NorthConnex in Sydney) to Transurban for gross proceeds of ~A$4.5B (~$4.5B).
Primaris REIT (TSX:PMZ.UN) agreed to acquire a 100% interest in Upper Canada Mall, a ~990,000-sq.-ft. shopping centre in Newmarket, ON, for $411M; the property is currently co-owned by CPP Investments and Oxford Properties, OMERS’ real estate arm.
BGO, a global real estate investment management firm owned by Sun Life, acquired an 11-property, ~223,000-sq.-ft. U.S. ambulatory surgery centre portfolio from a Flagship Healthcare Properties / AEW Capital Management JV.
CBRE U.S. Healthcare Capital Markets was exclusive advisor to the seller.
Valsoft: The Montréal-based vertical software acquirer bought Firebrand Group from Media Do for US$20M; the publishing software group includes Quality Solutions, NetGalley, and three subsidiaries.
Clio: The Vancouver-based legal AI company acquired Learned Hand, an AI workspace built for judges and courts, marking Clio’s first direct expansion into the judiciary.
VC & Growth Equity
Intrepid Growth Partners: The Toronto- and London-based AI growth investor joined a US$60M Series C for Metaview, a London-based AI recruiting platform, led by Insight Partners, alongside GV, Seedcamp, Vertex Ventures US, Plural, and Garuda Ventures.
ECM
TD Bank (TSX:TD) announced plans to repurchase up to $10B of common shares by July 2027, capped at 61M shares (~3.7% of shares outstanding).
DCM & Credit
Polar Asset Management Partners: The Toronto-based hedge fund completed its debut $430M residential mortgage-backed securities offering backed by uninsured Canadian first-lien, fixed-rate mortgages.
National Bank of Canada (TSX:NA) issued US$60M of 5.67% senior unsecured notes due 2031.
Standard Chartered was sole bookrunner.