Good morning!

Canadian defence is covering new ground, with Czechia’s CSG making space in its portfolio with a stake in MDA, and Dominion Dynamics’ deal to build Ukrainian ground drones in Canada.

Elsewhere, Roots shareholders have given the retailer’s take-private the green light, and Canadian companies also announced a wave of new bond offerings post-Thanksgiving.

Let’s get into it.

MARKET RUNDOWN

Yesterday’s Close

1D changes for the TSX and CA / US 10Y are versus Oct. 9, due to Monday’s holiday closures

The TSX gained 0.9% on its return from Thanksgiving as bond yields eased, with energy shares leading the advance.
Crude oil reversed early losses to finish higher as Middle East supply concerns persisted and traders questioned how much relief renewed Russian diesel exports would provide.
Mixed U.S. bank earnings and continued concerns about Chinese chip competition weighed on U.S. stocks.
U.S. stocks’ losses eased after NY Fed President John Williams said another rate hike may be appropriate this year, but he currently saw no need for further increases in 2027.

BRIEF OF THE DAY

Czech Defence Group CSG Buys 9.5% Stake in MDA Space

The investment: Czech defence group CSG (AMS:CSG) acquired 9.5% of Brampton-based satellite and space robotics company MDA Space (TSX:MDA), becoming its largest shareholder; the stake has a reported market value of ~$620M.

CSG’s POV: The defence group, whose core business is ammunition, wants to expand into space, where satellites support military communications and surveillance. CSG’s chairman Michal Strnad says investing in an established company is faster than building a space business from scratch.

MDA Space’s POV: Europe accounted for just ~5% of its 2025 revenue. CSG says it could introduce new customers, co-invest in European manufacturing or assembly facilities, and pursue joint acquisitions. MDA’s management welcomed CSG’s investment.

MDA Space’s backdrop: Canada’s defence strategy identifies $180B in defence procurement opportunities over the next decade, prioritizing domestic suppliers. Canada has also joined SAFE, an EU program that lends money to European governments to buy military equipment, where Canadian defence suppliers could compete for contracts funded by the program on similar terms to European suppliers.

The question: CSG’s minority stake gives it exposure to space, but no formal control over MDA’s strategy and decisions. It remains to be seen if the minority investment can still deliver the partnerships and new business CSG is seeking, particularly as CSG expands beyond its core expertise.

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💼 Why this matters: Closer ties between European and Canadian defence companies could help Canada build a defence industry with more customers and less dependence on the U.S. The test is whether those partnerships help expand Canadian production and exports while preserving Canadian control of critical technology and military sovereignty.

HEADLINE RECAP

In Canada

Modi to visit Canada in December as Canada and India push to conclude trade pact (RTRS)
Carney to attend pro-Canada rallies in Alberta days before referendum on potential separation vote (BBG)
Roots (TSX:ROOT) shareholders officially approve $4.10/share take-private by Marquee Brands (G&M)
TC Energy (TSX:TRP) closes Coastal GasLink investment deal with five First Nations (G&M)
Lightspeed Commerce (TSX:LSPD) cuts 250 roles as it streamlines operations and shifts spending toward growth (G&M)
Ottawa defence-tech firm Dominion Dynamics signs deal to build Ukrainian ground drones in Canada (G&M)
Norwegian graphite company Vianode courts Canadian investors as it explores partnership or sale ahead of $3.2B Ontario plant (TL)
Toronto cybersecurity firm Tailscale launches multimillion-dollar sovereign AI push, plans 50+ hires (BBG)
Dozens of Canadian researchers join 400+ scientists calling for a global AI oversight body (TL)

DEALS WITH CANADIAN PARTIES

M&A & Investments

MDA Space (TSX:MDA): Czech defence group CSG acquired a 9.5% stake (with an estimated market value of ~$620M) in the Brampton-based satellite and space robotics company, becoming its largest shareholder.
Roxmore Resources (TSX:RM) agreed to a ~$663M cash takeover by SSR Mining (TSX:SSRM), which will acquire its Converse gold project in Nevada; Roxmore’s other exploration assets (in Canada) will be spun out into a company owned ~85% by Roxmore shareholders and ~15% by SSR.
- ATB Cormark Capital Markets and Canaccord Genuity advised Roxmore and provided fairness opinions; SCP Resource Finance provided an additional Roxmore fairness opinion; CIBC provided a fairness opinion to SSR’s board.
Fengate Asset Management: The Toronto-based asset manager acquired a majority stake in Clinical Research of West Florida, a Tampa Bay clinical trial operator, on behalf of the LiUNA Pension Fund of Central and Eastern Canada.
- Westcove Partners advised Clinical Research of West Florida.
Optimal Blue, part of Constellation Software’s (TSX:CSU) Perseus Group, acquired Denver-based Usherpa, adding mortgage customer management and marketing software to its U.S. mortgage technology business.
Azimut Exploration (TSXV:AZM) signed a two-stage deal allowing Centerra Gold (TSX:CG) to earn up to 70% of its Corvet and Kaanaayaa gold-copper properties in Québec through $16M of exploration spending, up to $850K in cash, and a qualifying preliminary economic assessment.

VC & Growth Equity

Intellivisa: The Toronto-based AI travel clearance platform raised US$3M (~$4.3M) in pre-seed funding co-led by Mu Ventures and Incisive Ventures, with Uncommon Denominator, Recursive Ventures, and United Airlines Ventures participating.
Appficiency: The Mississauga-based IT consultancy backed by the Canadian Business Growth Fund (CBGF) announced an undisclosed growth investment in Denver-based Salesforce consultancy RedPoint Solutions.

ECM

Energy Fuels (TSX:EFR): The Colorado-based uranium and rare earths producer filed to sell up to an additional US$500M of shares through its at-the-market program.
- BMO, Canaccord Genuity, and Cantor Fitzgerald were lead agents.

DCM & Credit

Toyota Credit Canada: The Toronto-based auto lender announced $800M of senior unsecured notes, comprising $350M of 4.05% notes due 2029 and $450M of 4.35% notes due 2031.
- CIBC, RBC, and TD were joint bookrunners.
Chemtrade Logistics Income Fund (TSX:CHE.UN): The Toronto-based industrial chemicals producer announced an additional $200M of its existing 5.75% senior unsecured notes due 2032, bringing total outstanding to $450M.
- BMO and National Bank were joint bookrunners.
CHIP Mortgage Trust: The Toronto-based trust backed by reverse-mortgage receivables announced $175M of 4.53% senior medium-term notes due 2032.
- CIBC and TD were joint bookrunners.
Zedcor (TSXV:ZDC): The Calgary-based security services provider expanded its committed National Bank credit facility to $100M from $75M and added a $50M uncommitted accordion, providing up to $150M of potential borrowing capacity for continued North American growth.
Fairstone Bank of Canada: The Montréal-based consumer lender priced €500M of 3.75% mortgage covered bonds due October 2029, its first issuance under its newly approved covered bond program.
- BMO, DZ Bank, LBBW, Natixis, and RBC were joint bookrunners.
RBC (TSX:RY) announced a $500M four-year Indigenous Bond, with proceeds supporting loans to Indigenous communities and businesses across Canada.
- RBC was sole bookrunner, with Cedar Leaf Capital as co-lead agent.
Scotiabank (TSX:BNS) announced a US$2.3B offering of senior unsecured bail-in notes across four tranches: US$600M of 5.407% notes due 2029, US$400M of floating rate notes due 2029, US$700M of 5.632% notes due 2030, and US$600M of 5.851% notes due 2032; the three fixed-to-floating tranches switch to floating rates one year before maturity.
- J.P. Morgan, Natixis, Scotiabank, and Wells Fargo were joint bookrunners.
TD Bank (TSX:TD) announced a US$1.5B offering of 5.197% mortgage covered bonds due 2029.
- BMO, CIBC, Lloyds, Standard Chartered, and TD were joint bookrunners.
Province of Manitoba announced an additional $400M of its existing 3.80% bonds due 2036, bringing total outstanding to $2.1B.
- CIBC led the offering, with National Bank and RBC as joint lead managers.
City of Saguenay: The Québec municipality announced a ~$55M bond offering across five tranches due 2027-31, with coupons ranging from 3.10% to 4.05%.
- Desjardins was sole bookrunner.

BAY STREET TRIVIA

In 1998, four of Canada’s five largest banks announced two proposed megamergers. Which two mergers were proposed?

FOR THE GROUP CHAT

💼 CSG Buys 9.5% of MDA Space