TD Bank eyes big private deals in oil and gas M&A

* Ross Smith Sousa acquisition brings technical expertise

* TD aims for C$100 million-plus deals

TORONTO, July 12 (BestGrowthStock) – Toronto-Dominion Bank (TD.TO: )
will use the new expertise it acquired with Calgary’s Ross
Smith Sousa to access large private deals in Canada’s oil and
gas sector, aiming for transactions of C$100 million ($96
million) or more, a top executive told Reuters on Monday.

Canada’s second-largest bank said late last week it
acquired Ross Smith Sousa Advisors for an undisclosed amount in
a deal aimed at boosting its investment banking presence in the
energy sector, starting with two major deals.

“We’ve got two mandates out of the gate, one for Shell and
one for Encana, and those are the kind of people we want to be
working for,” said Drew MacIntyre, vice-chairman of the TD’s
investment banking arm, TD Securities.

“We’d be in the larger production, C$100 million-plus
range.”

MacIntyre could not comment on the size of the Encana Corp
(ECA.TO: ) or Royal Dutch Shell (RDSa.L: ) mandates, saying only
that they were worth much more than the C$100 million target
range.

TD has been retained by Encana, the country’s largest
natural gas producer, as exclusive financial adviser on the
sale of certain gas and oil assets. It was also retained to
sell certain natural gas assets of Shell Canada.

MacIntyre said that in purchasing Ross Smith Sousa, TD was
adding technical expertise to help it appraise assets, adding
scope to existing M&A business in asset acquisition and
divestitures in oil and gas.

“What we’re seeing is that this is going to be a busy year
— not a record year, but a busy year,” said MacIntyre. “That
would be split between corporate deals and asset deals, and so
we want to be active on both sides of that equation.”

A corporate deal involves the acquisition of public stock
to take control of a company, as opposed to the acquisition of
individual assets.

MacIntyre said the bank hopes to target more business among
existing investment banking clients selling bigger strategic
assets.

TD is boosting its already considerable presence in
Canadian mergers and acquisitions at a time when deal-making is
picking up in the energy sector on the back of improving credit
markets and a stronger economy.

It also follows an acceleration in foreign investment in
Canadian oil and gas assets, particularly from buyers in Asia
such as China and South Korea.

“I think the real trend right now, whether it’s the
national oil companies or the multinationals, is still in the
asset accumulation phase,” said MacIntyre.

($1=$1.04 Canadian)
(Reporting by Pav Jordan; editing by Rob Wilson)

TD Bank eyes big private deals in oil and gas M&A