TMX takeover by LSE: a group of Canadian banks and Pension Funds fight back

Finally, some groups from our country, like in the case of the Equinox Minerals bid by China Minmetals, made an offer to buy the TMX to keep the control of that stock exchange in Canada. Because, let’s speak frankly here, that supposed « merger of equals » is nothing less than a takeover of the TMX by the LSE. Question: why, according to you, the LSE wants so bad to buy the TMX? Financial analysts and « experts » could mention dozens of reasons but the most obvious that comes to mind is because the TMX controls the world’s resources. In previous articles on the so-called « revolutions » in the Middle East I, along with heroic anti-fascist researcher Dave Emory, warned readers and listeners not to get too optimistic about the « democratic » nature of these uprisings. These operations were conducted for strategical and geo-political reasons. The Earth’s resources are beginning to spread a little thinner in recent years due to the rise of the globe’s population and demand for products. Control of resources is the key of power for the world of tomorrow. Control the resources and you control the game, don’t control the resources and you’ll be left alone. It is as simple as that. In my posts, I often reminded you that our civilization is superior and that we have to take some measures to make sure that no one could take away all the great inventions and the quality of life that we have accomplished.

A geo-political concept that is often forgotten but nevertheless really essential for a real comprehension of the world is the concept of the « Earth Island ». It describes a stretch of land that begins at the Strait of Gibraltar and spreads until the confines of China. That piece of Earth contains the most of the world’s resources, the most population, the most lands, the most oil, etc. So at least a partial control of that area is essential for any global power or civilization. It is no surprise if the LSE wants to acquire control over the TMX. In effect, then they could be in a better position to manipulate the market in favor of their own interests. It is obvious that when the LSE made this bid for the TMX, their board of directors thought about their own wealth and the one of all the people they are networking with, and not the wealth of Canadians and of the world. That’s why I recommend that you, the TMX, close the deal with the Canadian groups. That’s the logical thing to do. If we keep the control of that institution here, then we are sure to keep some kind of control over our economy. Canada is a big country but with a tiny population, with a political sovereignty that depends totally on the good will of the Americans, with a rather tiny number of institutions, so that would be foolish to relinquish a tool such as the TMX, while our country is already not a big player on the world’s scene. As a Quebecker, having already lost the Montreal Stock Exchange, I would perceive this as an insult. If we accepted the deal with the Toronto Stock Exchange and the loss of control that resulted, that was not to see it go overseas afterwards. Here is a Globe and Mail article that presents the bid of the Canadian group, and a series of earlier posts about the uprisings in the Middle East.





Update on China’s bid for Equinox Minerals Ltd

Finally, somebody in Canada reacted to the attempt by a foreign group to take control of the canadian company Equinox Minerals Ltd. Canadian company Barrick Gold Corp made a bid of $7.3 billion dollars to acquire Equinox Minerals. 15 hours after the offer, China Minmetals Resources Ltd announced that it was pulling out of the bidding process. By making this acquisition, Barrick Gold broadens its field of interest to include copper in its portfolio. I like it, globally. Not knowing what the Chinese were up to with that bid, I prefer for the moment that the control of the company stays here. It is in the culture of the  business community now to always aim at getting bigger and bigger and to swallow smaller companies, I know. Maybe in 100 years there will be only 5 companies left on the whole surface of the Earth. That’s the goal of the Third Reich anyway, to be able to control the world with a few number of companies. But for today, I think it is a good news for Canada that we could keep Equinox here. Check on the earlier post and read the articles below.

Barrick’s bid

China’s withdrawal

China’s aggressive bids in the mining industry: its counter-attack against the West?

State-owned China Minmetals Corp has made a $6.3-billion offer in cash to acquire canadian copper producer Equinox Minerals Ltd. Equinox operates, notably, mines in Zambia and in Saudi Arabia. Recently, Equinox has made an offer to acquire Lundin Mining Corp, which was rejected. This bid now by Minmetals sinks Equinox’s offer for Lundin anyway. The bid also shows a change of attitude on the part of China in relation with takeover tactics. They seem to want to adopt the western attitude. Apparently, if the bid is successful, Minmetals will still want to get their hands on Lundin, which would make them an important player in the copper industry.

Question: Is this China’s response to the « uprisings » (see my earlier posts: this, this and this) in the Middle East, through which the western world seems to be reaffirming its control over the resources, oil and others? In other terms, instead of counter-attacking militarily to the West’s aggressive takeover moves for resources in the Middle East, China has chosen to, for the moment, use economic and financial tools to achieve that same goal? With a population of 1.5 billion, their need and hunger for raw materials and energy is insatiable and will just keep growing. How long will they be able to restraint their efforts like this to get the resources they need without deploying more agressive solutions, such as military means? I don’t know. But we are certainly witnessing on their part a change of strategy. Their economy is roaring and with all these mouths to feed and these industries to furnish materials and energy to, it is just a question of time before things get a little more physical. The second article shows that, although copper doesn’t seeem like a good investment at this time, the Chinese want to have a bigger chunk of the cake.