Talk of TransCanada buying US company in +$10 billion deal
The WSJ reports that TransCanada could buy Columbia Pipeline Group in a deal that "could be worth well over $10 billion"
Shares of Colombia are up more than 10% on the report.
The last major USD/CAD M&A announcement was US hardware store Lowe's buying Canadian counterpart Rona in $3.2 billion deal. That deal market an acceleration in USD/CAD selling.
At the moment, the direction of M&A that makes sense is for US companies to buy up Canadian rivals because the currency is so cheap.
The thing about a TransCanada/Columbia deal is that we don't know how it will be financed. TransCanada has many operations in the United States. Shares of the company are dual-listed and it also has extensive US dollar debt, so the FX flows may be negligible.
