Here are five things you need to know this morning
Trump repeats threats ahead of Carney meeting: As Prime Minister Mark Carney prepares to travel to Washington to meet with Donald Trump, the U.S. president continues to indicate he would like America to absorb its northern neighbour. In a television interview yesterday, Trump said it is “highly unlikely” the United States would ever use military force to annex Canada, though he maintains he will continue to push to make it the 51st state. Trump also repeated claims that America’s trade deficit with Canada amounts to a subsidy for the Canadian economy.
OPEC+ raising production: OPEC+ has announced a second hike in oil production. The organization is boosting its output in June by 411,000 barrels per day. The increase is somewhat puzzling, considering oil prices have been falling amid fears that demand will weaken as the global economy deals with a trade war. Last month, OPEC announced a similar production hike for May, which was triple the planned output.
Parkland agrees to takeover: Calgary-based fuel and gas station company Parkland has agreed to a takeover by American fuel company Sunoco. As part of the US$9.1 billion-dollar deal, Sunoco plans to form a new publicly traded company called Suncorp. The friendly deal is expected to close in the second half of 2025. Activist investor Simpson Oil had been pushing for changes at Parkland. Last Friday, Simpson announced its nominees for Parkland’s board had enough support to take control of the company.
Shell mulling BP deal? Continuing with the energy theme… Bloomberg News is reporting Shell is considering a takeover of BP but will wait for a drop in the shares and oil price before making a bid. BP shares have lost a third of their value in the last year as the company’s turnaround plan has failed to win over investors. Sources say other large companies have also been analyzing a potential bid for BP. A successful combination would be one of the oil industry’s largest-ever takeovers, bringing together the iconic British majors in a deal that’s been discussed on and offfor decades.
Canadian taking over for Buffett: One of the most legendary investors of all time is stepping down – and a Canadian is taking over. This weekend, Warren Buffett, the 94-year-old architect and face of Berkshire Hathaway Inc., announced he would step down as president and CEO of the company at the end of this year. He will be succeeded by Greg Abel, a Calgary native and long-time Berkshire executive, who has long been considered the heir apparent at the company. The 62-year-old will also inherit a plethora of questions, starting with what he’ll do with Berkshire’s almost US$350 billion cash pile after Buffett largely sat out a volatile last few years in the markets.
