Power Corporation of Canada, today a major investment holding and management corporation, was formed in 1925, with A.J. Nesbitt of Montreal as the first president. The purpose of the corporation was to acquire and develop steam and hydro power plants to serve the industrial development and various communities in which they were located.

One of these corporations, Canada Northern Power Corporation Limited, through subsidiaries, served the gold mining areas of Porcupine, Kirkland Lake, and Larder Lake, as well as the silver mining areas of Gowganda, Cobalt and South Lorrain. It also owned a transmission line serving the copper-gold area of Rouyn, Quebec. The Ottawa and Hull Power Company Limited, through its subsidiary, owned three hydro electric plants serving the capital region and the Ottawa Valley.

Companies in which Power Corporation had substantial interest included: Southern Canada Power Company Limited, serving the industrial region of Quebec's Eastern Townships; the Dominion Power and Transmission Company Limited and its subsidiaries serving the golden horseshoe, including Hamilton, instrumental in developing the industrial potential of the entire area; Winnipeg Electric Company and its subsidiary Manitoba Power Company Limited supplying electric light, power gas and traction (street railway) to the City of Winnipeg and surrounding municipalities and East Kootenay Power Company Limited servicing a territory from Cranbrook, B.C. to Blairmore, Alberta.

In 1927, the directors received an offer for the common shares of the Ottawa-Montreal Power Company Limited which was conditionally accepted provided the minority shareholders could sell their shares at the same price, signifying that the directors respected the rights of minority shareholders even though the securities legislation of the time did not provide such protection. Power Corporation's substantial investment portfolio was commended in the 1930 Directors' Report, in part stating: "During the five years it has been in existence, your Corporation has attained a strong position in the public utility field .... as well as being active in promoting, building, financing and servicing of industrial developments in all areas in which it operates."
 

Mr. Paul Desmarais, Chairman,Power Corporation.

The Manitoba Hydro-Electric Commission acquired in 1953 the Winnipeg Electric Company, one of the original companies acquired by Power Corporation of Canada in 1925. This was the first of a series of acquisitions of the Corporation's investments in hydro-electric companies by various provincial governments or agencies. In 1961 the government of British Columbia expropriated the assets of British Columbia Power Corporation, one of the company's west coast investments. This was followed by Quebec Hydro-Electric Commission's takeover of the company's interest in Quebec utility companies.

The foregoing transactions enabled the Corporation to redirect its activities to economic diversification. In 1968 Mr. Paul Desmarais, the new Chairman, provided new focus for the company. While individual investments declined, the strategy turned to developing substantial interests in fewer companies. Today, the Corporation has major interests in the pulp, paper and packaging industryConsolidated-Bathurst Inc.; the international financial services industry, through Power Financial Corporation, The Great-West Life Assurance Company, Investors Group Inc., Montreal Trustco and Pargesa Holding S.A.; the communications industry—La Presse and a number of regional newspapers in Quebec and several radio and television stations in Quebec and Ontario.

The Corporation, since its beginning, together with its leaders and employees, has been a major contributor to the development of Canada from sea to sea.