The Eagle Blog

Canadian Companies

This week there was an announcement that AMD has bought ATI, which has been one of the stars among Canadian companies for some time now. Rumours (once again) abound that Cognos is likely to be snapped up by some larger company at some point … maybe a Microsoft or an IBM?

There has been debate in many circles about the impact on Canada as our “jewels” are picked off by larger multi-national companies. Will there be a negative impact on the Canadian economy? Should all of those profits be going offshore etc?

As a business owner and someone who has managed to build a National, not-quite-so-small (by Canadian standards) company my concerns are more about shareholder value and building a sustainable entity than whether we will be bought by some non-Canadian company. For me the market forces will determine how these things play out, my company today competes favourably in a very competitive market. I have no doubt that at some point in the future Eagle will look different … whether we will have acquired other companies or we have been acquired is still to be determined. However it is never going to be determined by organizations or individuals worrying about nationalistic concerns.

We operate in a Global economy and every company is seeking to have continued growth. This will continue to result in M&A activity that will see the landscape change considerably. AMD have put some heat onto Intel with this acquisition, who will no doubt respond appropriately. I really don’t think anyone at AMD or ATI even considered the impact on the Canadian psyche of another “lost Canadian company”.

It’s all about business … and business decisions should not be emotional. They can be passionate (I do read Tom Peter’s blog) … but not emotional.

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