Good morning!
Canada is putting an oil pipeline in the fast lane: Carney has named Pacific Link, a proposed Alberta-to-BC oil pipeline, Canada’s first “project of national interest” – fast-tracking its federal review.
But speed comes with a price, too: the parliamentary budget watchdog estimates Alto’s Toronto–Québec City high-speed rail project could cost $75B-$113B – materially above the government’s $60B-$90B range.
Elsewhere, Rogers closed its $4.35B MLSE acquisition. The Leafs are officially Rogers’ problem now.
Let’s get into it.
MARKETS 📈
All data as of yesterday’s market close at 4:00 PM ET
Recap: U.S. stocks erased early losses as Treasury yields reversed lower after Fed Vice Chair Philip Jefferson signaled patience on further rate hikes; yields had spiked earlier in the morning after data showed U.S. factory input prices jumped. Oil jumped +3% after China suspended fuel exports beyond Hong Kong / Macau and reports of a larger U.S. military deployment to the Middle East. The TSX hit a 10-week low as mining weakness outweighed energy gains.
BRIEF OF THE DAY 💡
Alberta–BC Oil Pipeline Becomes Canada’s First “Project of National Interest”
The news: Mark Carney designated Pacific Link, a proposed new oil pipeline connecting Alberta to British Columbia’s Pacific coast, the first “project of national interest” under the Building Canada Act, passed in 2025.
The project: The line would carry 1 million barrels of heavy crude per day from Alberta’s oil sands, running from near Edmonton to near Vancouver. There, oil would be loaded onto tankers for shipment to Asian markets. Alberta estimates construction at $35.2B-$43.7B.
What changes: Carney’s designation gives the pipeline federal approval in principle and fast-tracks its remaining federal permits through a single review. Investors get Ottawa’s backing upfront, rather than waiting years for that decision.
The backers: The pipeline would initially be 90% government-owned (split between Alberta and federally-owned Trans Mountain), with Calgary-based Pembina Pipeline (TSX:PPL) holding the remaining 10%. Indigenous communities would later be offered at least 10% ownership.
What’s next: Ottawa wants construction conditions finalized by September 2027 so work can begin, with operations targeted for 2032-33. Financing remains to be finalized.
💼 Why it matters: About 90% of Canada’s crude oil exports went to the U.S. in 2025. By expanding access to Asian buyers, the pipeline could reduce Canada’s exposure to U.S. trade policy and improve the prices Canadian producers receive. Greater confidence in export capacity could also encourage the oil sands investment needed to fill the pipeline.
HEADLINE RECAP 📰
In Canada
Carney designates West-Coast oil pipeline as a project of national interest, fast-tracking federal review (CBC)
Parliamentary Budget office estimates Alto high-speed rail could cost $75B-$113B, above government’s $60B-$90B range (TL)
Rogers closes $4.35B MLSE acquisition; MLSE CEO Keith Pelley to head Rogers Media (YF)
Bank of Canada says it won’t use interest rates to directly target house prices (BBG)
About one-third of products hit by Canada’s new U.S. tariffs already qualify for some exemptions (G&M)
Canadian factory PMI hits six-month low in September as trade frictions weigh (RTRS)
Hydro-Québec asks provincial regulator to hike energy rates for large data centres (G&M)
Calgary’s Enerflex wins 450 MW power contract from a North American data centre developer; shares jump +12% (G&M)
Canada to seek “associated country” status under EU cloud / AI rules, opening door to restricted tech contracts (TL)
€21B-valued French AI firm Mistral plans Montréal and Toronto offices amid growing demand for sovereign AI (TL)
DEAL FLOW 🇨🇦 (Canadian parties highlighted)
M&A & Investments
WSP Global (TSX:WSP) agreed to acquire GCM Corpo, a Montréal-based engineering consultancy serving energy and industrial clients; sellers include largest shareholder Fonds de solidarité FTQ.
Invesque (TSX:IVQ): The healthcare property owner agreed to be taken private by controlling shareholder Magnetar Financial (~80% owner) at an implied equity value of ~$131M.
Volaris Group, part of Constellation Software (TSX:CSU), launched a Board-backed cash offer of ~SEK259M (~$37M) for Triona, a Swedish software and consulting firm serving transport, infrastructure, and forestry clients.
Finning (TSX:FTT): The BC-based industrial equipment dealer acquired U.K. generator rental group John F Hunt Power, including site machinery maker Morris Machinery.
Englobe: The QC-based engineering and environmental services firm, controlled by Colliers, agreed to acquire Crozier, an ON-based land development and transportation engineering consultancy.
BST Canada: The Toronto-based real estate investment and asset management firm acquired a 122-unit rental apartment building in Toronto, expanding its multifamily portfolio.
VC & Growth Equity
OSCP: The Montréal-based maker of photonic navigation sensors closed an undisclosed Series A led by New Science Ventures, with participation from Emerging Ventures and 2050 Capital.
Continuum Health Ventures: The Toronto-based healthtech investor joined a US$9M (~$13M) financing for infectious disease diagnostics company Biotia, with DigitalDx Ventures and Convergent Ventures also participating.
ECM
Condor Energies (TSX:CDR): The Calgary-based energy developer upsized its convertible debenture financing from $65M to $70M, comprising a $25M public offering and $45M private placement of 12% unsecured converts.
Research Capital was sole bookrunner and co-lead with Canaccord Genuity.
DCM & Credit
City of Mascouche: The Québec municipality announced a ~$27M bond offering across six tranches due 2027-36, with coupons ranging from 3.10% to 4.75%.
National Bank Financial was sole bookrunner.