Power Corporation of Canada, today a major international holding and management corporation, was formed in 1925, in Montreal.

The purpose of the corporation was to acquire and develop steam and hydro plants serving industrial development and various Canadian communities.

Companies in which Power Corporation had substantial interest included: Canada Northern Power Corporation Limited, serving parts of Northern Ontario; the Ottawa and Hull Power Company Limited, serving the capital region and the Ottawa Valley; 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 greater Winnipeg; and East Kootenay Power Company Limited servicing a territory from Cranbrook, B.C. to Blairmore, Alberta.

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 hydroelectric companies by various 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.

These nationalizations left Power with a substantial amount of cash and enabled the Corporation to redirect its activities and diversify. In 1968 Mr. Paul Desmarais, the new Chairman, provided new focus for the company. The strategy turned to developing substantial interests in fewer companies. Major interests were developed in the pulp, paper, and packaging industry — Consolidated-Bathurst Inc.; the international financial services industry, through The Great-West Life Assurance Company, Investors Group Inc., and Montreal Trustco; and the communications industry — La Presse and a number of regional newspapers in Quebec and several radio and television stations in Quebec and Ontario.

During the period from 1984 to 1986, the financial services group was reorganized and renamed Power Financial Corporation. New investments included several European financial, energy, and communications companies. Pargesa Holding S.A., Geneva, in which Power Financial and the Frère Group of Brussels have equal interests, today holds substantial interests in companies including Compagnie Financière de Paribas, Imetal S.A. and CarnaudMetalbox of Paris; Petrofina S.A., Tractebel S.A., and Banque Bruxelles Lambert of Brussels, as well as Compagnie Luxembourgeoise de Télédiffusion, and Orior Holding S.A. of Switzerland.

In 1989 Power Financial accepted the offer of another Canadian holding company and sold its controlling interest in Montreal Trustco. As well, Power Corporation accepted an offer for its interest in Consolidated-Bathurst. A portion of the resulting liquidity was redeployed by Power in the communications industry to acquire a significant position in Southam Inc. of Toronto and an interest in Time Warner Inc. of New York.

Power Corporation has a valued, long-standing business relationship with China International Trust and Investment Corporation and with other entities in the People’s Republic of China. In 1986, Power and CITIC co-invested in a British Columbia pulp mill. Recently, Power has developed interests in China in real estate development, electric power generation, gold mining — in partnership with American Barrick Inc. — and transportation.

For seventy years, Power Corporation has been a major contributor to the development of Canada and has established an important Canadian presence in the United States, Europe, and Asia.