TransCanada name change ‘de-emphasizes’ Canada for leery investors: analyst

CALGARY — A planned move by TransCanada Corp. to change its name to TC Energy will help it attract investors who are “leery” of putting money in anything Canadian given the country’s recent difficulty in building energy projects, a U.S.-based financial analyst said Wednesday.

But the company and a Canadian financial analyst disagreed, saying the name change recognizes that TransCanada has grown outside the country, with moves including its recent US$13-billion purchase of U.S. natural gas transporter Columbia Pipeline Group and a growing list of projects in Mexico.

“While our strategy and priorities remain the same, we believe the new name will help to further unite our employees and will enable us to better connect with our diverse stakeholders,” said chief executive Russ Girling in a news release on Wednesday.

“Whether they know us as TC Energy in English, TC Energie in French, or TC Energia in Spanish, the communities where we operate can continue to count on us to follow through on our commitments and live up to our values of safety, integrity, responsibility and collaboration in everything we do.”

The name change was announced a day after rallies were staged in cities across Canada in support of northern B.C. Indigenous people who are trying to stop a TransCanada subsidiary from building the Coastal GasLink natural gas pipeline project through disputed territory.

“Some investors have grown leery of investing in Canada. I think this is a way to de-emphasize Canada, quite frankly,” said Jennifer Rowland, a St. Louis-based analyst for Edward Jones, noting delays in building new oil pipelines led to Alberta imposing crude production constraints on its producers.

“Removing Canada from its name is a way to remind investors it’s not just a Canadian company, with some of the challenges we’re seeing in Canada.”

She said the name change recalls the move by Calgary-based EnCana to rebrand itself with a lower-case “C” in 2010, thus de-emphasizing its Canadian roots.

But Calgary-based analyst Matthew Taylor of Tudor Pickering Holt & Co., said he accepts the company’s explanation, adding the move has been talked about for some time.

“To suggest one of the biggest corporations in Canada is changing its name to distance itself from Canadian policies? I don’t know that I agree with that when a good chunk of their customers are still Canadian and who they interact with are still Canadian,” he said.

There’s good reason for the company to be proud of its Canadian roots, he added, given its place on stock market indexes of Canadian firms and Canada’s reputation versus the United States in Mexico.

TransCanada says it has about 7,000 employees in North America, with 3,500 in Canada, 3,200 in the U.S. and 300 in Mexico.

It said its new name reflects its diverse business interests in pipelines, power generation and energy storage operations in the three countries.

TransCanada vowed to keep headquarters in Calgary and said it plans to continue trading under the symbol TRP on the Toronto and New York stock exchanges if shareholders approve the name change at its next annual meeting.

On its website, TransCanada says it was founded in 1951 to develop the TransCanada Pipeline to bring natural gas from Western Canada to eastern customers. The pipeline is now called the Canadian Mainline.

Just Posted

Young Blackfalds mother copes with double tragedies with community support

Three fundraisers are being held to help Alana Newbold and her children

Carjacking victim would stop to help again

Springbrook woman has some sympathy for carjacker

Red Deer’s crisis line workers are busy dealing with multiple emergencies

Callers need everything from mental health counselling to their basic needs met

Eckville man charged with child porn offences

Australian police provide tip

Eight arrested in RCMP stolen vehicle operation

Six stolen vehicles recovered and dozens of charges laid

2-for-1: Total lunar eclipse comes with supermoon bonus

On Sunday night, the moon, Earth and sun lined up to create the eclipse, which was visible throughout North and South America

Edmonton Oilers fire general manager Peter Chiarelli: reports

EDMONTON — Peter Chiarelli has been fired as general manager of the… Continue reading

Canadian Milos Raonic has Australian Open run end in quarterfinals

MELBOURNE, Australia — Canadian Milos Raonic is done at the Australian Open… Continue reading

$20K pay gap between women, men in Canadian tech jobs

The report defines tech workers as people either producing or making extensive use of technology, regardless of industry

Two Quebec short-film directors mark first Oscar nominations together

TORONTO — Two Quebec filmmakers celebrated in solidarity on Tuesday after learning… Continue reading

Toronto illustrator teams up with Paul McCartney on children’s book

Toronto-based illustrator Kathryn Durst says she’s found a true collaborator in Paul… Continue reading

Catholic student says he didn’t disrespect Native American

Many saw the white teenagers, who had travelled to Washington for an anti-abortion rally, appearing to mock the Native Americans

Backlund scores OT winner for Calgary Flames in 3-2 win over Carolina Hurricanes

Flames 3, Hurricanes 2 (OT) CALGARY — Mikael Backlund scored 15 seconds… Continue reading

Glendening’s two-goal performance leads Red Wings past Oilers 3-2

Red Wings 3, Oilers 2 EDMONTON — Luke Glendening had a pair… Continue reading

Most Read