Good morning!
Fairfax is banking on India’s growth with its planned investment in IDBI Bank, while TD and BMO are in the crosshairs of U.S. banking regulators.
Different markets, different kinds of interest.
Let’s get into it.
MARKET RUNDOWN
Yesterday’s Close
Hotter-than-expected annual inflation in the U.S. (which reached 3.7% in September, vs. 3.6% consensus) lifted Fed rate hike bets and intensified concerns about AI companies’ borrowing costs, sending the Nasdaq down (1.9%) - its worst day since July.
The TSX fell (1.1%) as a stronger U.S. dollar and increased expectations for Fed hikes pushed gold and silver lower, weighing on miners.
Oil rose as a Houthi strike on Saudi Aramco’s headquarters and Iranian threats to shipping through the Strait of Hormuz raised supply fears.
BRIEF OF THE DAY
Fairfax Selected to Buy Control of India’s IDBI Bank for ~$7.9B
The deal: Toronto-based insurance & investment group Fairfax Financial (TSX:FFH) was selected to buy a 60.72% controlling stake in Mumbai-based IDBI Bank (NSE:IDBI) for US$5.6B (~$7.9B). The sellers, India’s government and state-owned Life Insurance Corporation of India (LIC), would retain a combined ~34%. The deal would be the largest-ever foreign direct investment in India’s financial sector.
Why India is selling: IDBI has returned to profitability after years of heavy bad-loan losses and capital injections from the Indian government and LIC. The government now wants private capital and management expertise to improve the bank’s competitiveness and reduce its reliance on government funding.
A four-year sale process: Launched in 2022, the auction required potential buyers to pass regulatory and security screening. Initial bids in early 2026 fell below the Indian government's minimum price and were rejected, prompting officials to request new offers and revise their valuation approach. Fairfax was ultimately selected as the winning bidder.
Fairfax’s strategy: Already invested in Indian banking and insurance, Fairfax wants to offer more financial services through IDBI’s customer network. It proposes transferring its interests in Digit Insurance and Fairfax India’s stake in investment bank & wealth manager IIFL Capital into IDBI. These transfers would require separate approvals.
The conditions: Definitive agreements remain unsigned, and approval from the Reserve Bank of India (India’s banking regulator) is still required. Fairfax would also have to sell its 40% stake in CSB Bank or merge CSB with IDBI within two years of signing the purchase agreement, to comply with regulatory restrictions on one group controlling two Indian banks.
💼 Why this matters: India’s growing middle class offers Canadian investors a source of growth beyond North America, as rising incomes expand the demand for credit, insurance, and wealth management. Canadian pension funds and asset managers already have significant investments there. The interest extends globally: deals involving foreign investors in India’s financial services sector reached a record US$20.5B in 2025.
HEADLINE RECAP
In Canada
TD, BMO among nine banks accused of discriminating against U.S. customers over political or religious beliefs (G&M)
Canada threatens forced sale of steelmaker Cleveland-Cliffs’ assets over Stelco layoffs in Ontario (BBG)
Ontario premier Doug Ford says Canada must plan as if U.S. tariffs are permanent (BBG)
Canada–U.S. cross-border travel up from last year, but remains below 2024 levels (G&M)
Canada-linked U.S. bond holdings near US$600B, fueling speculation over hidden Chinese buying (BBG)
Canadian banks and telecoms launch fraud intelligence-sharing platform (G&M)
Calgary-based Waterous Energy Fund plans US$1B fund to build a third Canadian oil producer that would grow through acquisitions (WSJ)
Canada makes an additional $500M available for regional AI initiative, bringing total funding to $700M (BK)
Canada says its defence innovation program has invested over $135M and supported 860 Canadian firms (PR)
Canada plans up to $50M for proposed digital forestry centre in New Brunswick (G&M)
Toronto fashion brand Smythe names former Canada Goose (TSX:GOOS) North America president as first CEO (TL)
DEALS WITH CANADIAN PARTIES
M&A & Investments
Fairfax Financial (TSX:FFH): The Toronto-based insurance & investment group was selected to acquire 60.72% of IDBI Bank from the Indian government and Life Insurance Corporation of India for ~INR529B (~$7.9B); definitive agreements remain unsigned
Miller Thomson: The Toronto-based business law firm agreed to acquire Mogan Daniels Slager, a Vancouver-based M&A & private equity law firm.
MEDFAR: The Montréal-based medical records software company, backed by Walter Capital Partners, acquired Montréal-based AlloMia, which automates patient calls and clinic appointment bookings using AI.
BTB REIT (TSX:BTB.UN) acquired an industrial property in Acheson, Alberta, for $18.75M, adding a ~52k-sq.-ft. building leased to North American Construction Group.
Volatus Aerospace (TSX:FLT): The Canadian aerospace & defence company agreed to acquire AISPECO, a Lithuanian maker of airborne sensing systems, for US$10.5M (~$15M) plus up to US$2.5M (~$3.6M) tied to milestones.
Longbow Capital: The Calgary-based PE firm joined S2G Investments, Apogem Capital, and QIC in backing the merger of liquid cooling specialist 3C and U.K. data centre engineering firm Datalec, forming 3C Datalec; the combined company forecasts US$400M+ in 2026 revenue and plans a Calgary facility.
Brookfield-owned and U.K.-based OnPath Energy agreed to sell its 55-MWp Barnsdale solar project in England to Octopus Renewables Infrastructure Trust, which expects to spend ~£34.6M (~$65M) including remaining construction costs.
Infotech: The Ontario-based IT research & advisory firm acquired Zluri, a Bengaluru-based maker of software for managing corporate apps and user access.
Solomon Partners advised Infotech on the acquisition.
MOBIA: The BC-based IT services firm completed a management buyout led by new CEO Chris Peerless; former owners Mike Reeves and Rob Lane retained selected resources under Kinovo Consulting.
VC & Growth Equity
Bia Health: The Québec City developer of AI clinical decision-support software raised $2.15M, comprising $750K in equity led by Anges Québec and $1.4M in debt from Finalta Capital, with Desjardins participating through its “Startup en résidence” program.
ECM
Cizzle Brands (Cboe CA:CZZL): The Ontario-based maker of CWENCH Hydration launched a U.S. share offering seeking at least US$15M alongside a proposed Nasdaq listing and debt restructuring, with US$10M earmarked to repay acquisition-related debt.
Joseph Gunnar & Co. was lead underwriter.
DCM & Credit
Dream Industrial REIT (TSX:DIR.UN): The Toronto-based industrial property owner announced a $300M private placement of 4.416% senior unsecured debentures due 2030, with proceeds to be swapped into euros for debt repayment and general trust purposes.
TD, Scotiabank, RBC, CIBC, and National Bank led the offering.
City of Châteauguay: The Québec municipality announced a ~$29M bond offering across six tranches due 2027–36, with coupons ranging from 2.00% to 4.75%.
BMO was sole bookrunner.
BAY STREET TRIVIA
Before it became synonymous with Canadian finance, what was Bay Street originally called?
FOR THE GROUP CHAT
