Competition Bureau
ToolsRelated topicsResourcesFood Processors Can Merge Following Competition ReviewOTTAWA, March 30, 2004 - The Competition Bureau will not challenge Maple Leaf Foods Inc.'s acquisition of the shares of Smithfield Canada and its subsidiary, Schneider Corporation. The Bureau carefully examined the merger's impact on different aspects of the food processing business and obtained input from customers, competitors, industry associations, farmers and other stakeholders. Its review revealed that hog procurement and primary pork processing are commodity businesses. The Bureau is aware that anti-dumping and countervailing actions are currently underway in the United States. While it is premature to assess the potential duties that might be imposed, such actions could cause the Bureau to reassess its conclusions. The Bureau's review of the merger's impact on further processed meats (bacon, wieners and sliced meats) identified some concern in the market for wieners. However, the Bureau concluded that the evidence at this time does not support a challenge before the Competition Tribunal. With respect to poultry sectors, the Bureau's review revealed that chicken hatcheries and procurement are provincially regulated and as a result the merged entity would be unable to influence price or quantity in these markets. The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. For media enquiries, please contact: For general enquiries, please contact: 
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Created: 2004-03-30 Updated: 2005-04-18 |
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