Canadian conglomerate company
Power Corporation of Canada
(
French
:
Power Corporation du Canada
) is a management and
holding company
that focuses on
financial services
in
North America
,
Europe
and
Asia
. Its core holdings are insurance, retirement,
wealth management
and investment management, including a portfolio of alternative investment platforms.
[4]
History
[
edit
]
Power Corporation of Canada was formed in 1925 by two
stockbrokers
?
Arthur J. Nesbitt
and his partner, Peter A.T. Thomson. Nesbitt served as the company's first president. Power Corporation was created as a
holding company
to manage their substantial investments in
public utility
companies involved in the
electrical power industry
in Quebec's
Eastern Townships
, plus in the other Canadian provinces of
Ontario
,
Manitoba
,
New Brunswick
and
British Columbia
. In the latter part of the 1930s, the company acquired a controlling interest in
Bathurst Pulp and Paper Company Ltd.
, and in 1938,
Canadian Oil Companies Ltd.
, selling the latter to
Shell Oil Company
in 1962.
In 1952, Arthur J. Nesbitt was succeeded as president by his son,
Arthur Deane Nesbitt
(1910?1978). The Nesbitt family sold most of its interest in Power Corporation to the
Paul Desmarais
group in 1968
[5]
and by 1970, no longer had any involvement.
[
when?
]
In 1975, Power Corporation attempted a takeover of the
Argus Corporation
holding company which had substantial interests in brewing, food retailing, farm implements manufacturing, paper products and other businesses. The Argus owners rejected the takeover attempt and decided to retain their voting shares, while 50% of the non-voting shares were purchased by Power Corp.
In 1976, ten percent of the voting shares were sold by
E. P. Taylor
to Desmarais.
Argus was eventually sold in 1978 to a
Conrad Black
-controlled firm.
In 1989, corporation began supporting the Imagine Canada program.
[7]
While Power Corporation was originally established as an electric utility holding company, the company became a conglomerate with interests in the finance industry, as well as interests in other business sectors such as sustainable and renewable energy.
[5]
1984 saw the creation of a management and holding company,
Power Financial Corporation
. Expansion for the group began in the 1970s, in Europe and followed in the 1990s, in Asia. The group's involvement in the finance sector continued in 2000, with the acquisition of
Canada Life
,
Mackenzie Financial
and
Putnam Investments
. Following the 2020 reorganization, Power Corporation owns 100% of Power Financial’s common shares.
In 2002, Power Corporation created the Sagard SAS fund, then Sagard Capital Partners, later named Sagard Holdings, in 2004, in the United States.
[8]
R. Jeffrey Orr was named Power Financial Corporation CEO in 2005.
[8]
By 2007, IGM Financial was the holding company for Power Corporation's investment fund companies.
[5]
Power Corporation also by 2009 had interests in the parent company of
La Presse
,
Mackenzie Financial
,
London Life Insurance
,
Canada Life Assurance
,
Great-West Life
, and
Putnam Investments
.
[9]
The company reduced its number of board directors in 2008 from 21 to 12.
[8]
Power Corporation acquired a stake in
China Asset Management
in 2011, purchasing 10% from
CITIC Securities
Co.
[10]
Also that year, Power Corporation's new fund Sagard China was founded. Through a number of recent initiatives, in partnership with its subsidiaries Great-West Lifeco and IGM Financial, the Power Corporation group has been actively participating in the emerging
fintech
industry. This fintech strategy is achieved through Portag3 (which created Canada’s largest fintech investment fund),
[11]
Wealthsimple, Personal Capital and Diagram.
In connection with the reorganization, Paul Desmarais Jr. and Andre Desmarais retired as co-chief executive officers of Power Corporation after 24 years in the roles and continue to serve as chairman and deputy chairman, respectively, of Power Corporation's board of directors. R. Jeffrey Orr, president and chief executive officer of Power Financial, become president and chief executive officer of Power Corporation, effective February 13, 2020.
[12]
[13]
[14]
[15]
Politics
[
edit
]
The corporation has been criticized for its influence on Canadian politics through its relationships with prominent politicians, including several prime ministers and provincial premiers.
[5]
Critics "occasionally charge that the family’s political connections give it unfair advantages," says the
New York Times
in 2007.
[5]
The company has been known to defend
federalism in Quebec
.
Paul Desmarais Jr.
, was one of thirty members of the
North American Competitiveness Council
, a group whose advice directed the policies of
Security and Prosperity Partnership of North America
(SPP).
[
citation needed
]
Several former
Canadian prime ministers
have occupied a position on the management team or on the board of Power Corporation, of one of its group companies or of its international advisory council :
- Former
Prime Minister of Canada
Paul Martin
was hired in the 1960s to work for
Paul Desmarais Sr.
by
Maurice Strong
. Martin became president of
Canada Steamship Lines
, a subsidiary of Power Corp., and in 1981, Desmarais sold the company to Martin and a partner. Martin went on to make his personal fortune as an owner of CSL.
- Former prime minister of Canada
Jean Chretien
sat on the board of Power Corp. subsidiary Consolidated Bathurst in the late 1980s, before he became the leader of the
Liberal Party of Canada
. Chretien's daughter
France
is married to the son of
Paul Desmarais
,
Andre
.
- Chretien's long-time aide
[16]
and chief policy advisor
Eddie Goldenberg
also worked in the past for Power Corp.
John Rae
, strategist for Chretien, served as Power Corp.'s executive vice president.
[17]
His is the brother of former interim
Liberal Party of Canada
Leader
Bob Rae
.
[16]
- Former prime minister of Canada
Pierre Trudeau
served in the mid-1990s, on Power Corp.'s international advisory board. Trudeau's assistant
Ted Johnson
also worked for Power Corp. During the Trudeau administration,
Michael Pitfield
held a variety of positions in government, but during his time in the private sector, he was at one time a vice-chairman of Power Corp.
- Former prime minister of Canada
Brian Mulroney
also has a relationship with Power Corporation. Mulroney's friend
Ian MacDonald
described Desmarais as "Mulroney's mentor in the business world", and it is believed that Mulroney has done legal work for Power Corp. since the end of his term as prime minister. Additionally, former Mulroney Minister of Transport
Don Mazankowski
served as Power Corp.'s company director.
- Former premiers of Ontario
Bill Davis
and
John Robarts
of the
Progressive Conservatives
have both sat on Power Corp.'s national advisory board.
- Former premier of Quebec
Daniel Johnson Jr.
worked for Power Corp. from 1973 to 1981, and in the last three years of this term was a vice president of the company.
- Former member of the Liberal Party of Canada
Maurice Strong
became president of Power Corp. by his mid-thirties. He had a role in the creation of the
Canadian International Development Agency
, and in 1976, he was appointed to run
Petro-Canada
. He later worked for the United Nations.
- Power Corp.'s international advisory board has featured individuals such as former
German chancellor
Helmut Schmidt
, former oil minister of Saudi Arabia Sheikh
Ahmed Zaki Yamani
, former head of the
US Federal Reserve
Board
Paul Volcker
, and the previously mentioned former prime minister of Canada Pierre Trudeau.
- The former
Caisse de depot et placement du Quebec
's president and CEO,
Henri-Paul Rousseau
[
fr
]
, acted as the vice chairman of both Power Corporation and Power Financial Corporation starting in 2009 until January 2018.
[9]
[18]
See also
[
edit
]
References
[
edit
]
- ^
"Federal Corporation Information"
.
Corporations Canada
. Retrieved
2018-09-30
.
- ^
a
b
c
d
"Annual Report 2020"
(PDF)
. Power Corporation of Canada.
- ^
"Assets under management and advisement"
.
www.powercorporation.com
.
- ^
"Power Corporation of Canada | Home"
.
- ^
a
b
c
d
e
The name is Power and it fits
,
The New York Times
, January 25, 2007.
- ^
Imagine Canada
- ^
a
b
c
History
, Power Corporation
- ^
a
b
Caisse de depot president leaving to join Power Corp.
,
CBC
- ^
Kiladze, Tim (11 August 2011),
"Power Corp. buys into big China asset manager"
,
The Globe and Mail
- ^
Silcoff, Sean (3 December 2019).
"Portag3 Ventures, affiliate of Power Corp., creates Canada's largest fintech investment fund - The Globe and Mail"
.
The Globe and Mail
.
- ^
"Power Corporation and Power Financial Announce Reorganization, Simplified Corporate Structure and Refocused Strategy - Press Releases"
.
- ^
"Power Corporation and Power Financial Announce Completion of Reorganization and the Determination of the Final Offer Price for the Pre-Emptive Right - Press Releases"
.
- ^
"Power Financial shareholders vote in favour of reorganization plan"
.
The Globe and Mail
. 11 February 2020.
- ^
"Power Financial Corp. shareholders vote to approve reorganization plan"
.
The Toronto Star
. 11 February 2020.
- ^
a
b
A new guy and the Nervous Nellies
,
CBC
- ^
"The players behind the scenes"
,
The Globe and Mail
, 4 June 2002
- ^
"Power Corporation announces the retirement of Henri-Paul Rousseau - Press Releases"
.
Bibliography
[
edit
]
External links
[
edit
]
Selected Morningstar National Bank Quebec companies of Canada
(May 19, 2020)
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