Canada Loses 68,000 Jobs in September as Major Corporate Deals Reshape Business Landscape
Canada shed 68,000 jobs in September, pushing the unemployment rate to 6.5 per cent. Meanwhile, Cleveland-Cliffs faces government pressure over Stelco layoffs, the Weston family is acquiring UK retailer Boots for US$8.9 billion, and Emera Inc. has proposed a merger with Canadian Utilities and ATCO that would create an enterprise valued at $72 billion.
Canada’s economy lost 68,000 jobs in September, marking a second consecutive month of declines and pushing the national unemployment rate up to 6.5 per cent, returning it to levels last seen in January. According to Statistics Canada, the job losses were concentrated in the public sector, which has declined by 119,000 positions year-over-year and recorded its fourth consecutive month of employment drops.
In the industrial sector, Cleveland-Cliffs Inc. decided to lay off up to 500 workers at its Stelco plant in Hamilton, Ont. The move prompted Industry Minister Mélanie Joly to issue an ultimatum to the company, demanding compliance with employment guarantees under the Investment Canada Act or face potential legal action. Cleveland-Cliffs CEO Lourenco Goncalves dismissed the idea of nationalizing Stelco in response to the mounting pressure.
Internationally, the Weston family is expanding its retail footprint through Wittington Investments Ltd., which is acquiring the 1,800-store UK drug-store chain Boots from U.S. private equity fund Sycamore Partners. The deal is valued at US$8.9 billion, including assumed debt.
In the Canadian energy sector, Halifax-based Emera Inc. unveiled a plan to merge with Calgary-based Canadian Utilities Ltd. and its parent ATCO Ltd. The proposed transaction carries a $35-billion bid context and would result in combined companies with an enterprise value of $72 billion, creating one of the 20 largest utilities in North America.