Competition Act - Mergers / Merger Notification of Large Transactions

Act: Competition Act, R.S.C. 1985, c. 19, 2nd Supp.
Regulation: Notifiable Transactions Regulations, [SOR/87-348]

To Whom Does This Apply?

The Competition Act applies to all businesses in Canada. All parties contemplating business mergers are strongly encouraged to contact the Competition Bureau at the earliest opportunity or before submitting a notification filing.

Summary

Under the Competition Act, mergers of all sizes and in all sectors of the economy are subject to review by the Commissioner of Competition and his or her staff to determine whether they will likely result in a substantial lessening or prevention of competition.

In general, mergers are viewed positively as a means to increase competitiveness, allowing Canadians to benefit from lower prices, product choice and quality services. However, the Bureau pays close attention to the small portion of mergers that could substantially prevent or lessen competition in particular markets. In reviewing mergers, the Bureau considers many different elements including the level of economic concentration in the relevant industry and the merging parties' market shares.

If the Commissioner of Competition determines that the merger is likely to affect competition, he or she may apply to the Competition Tribunal for an order to prevent, dissolve or alter the merger.

In addition, the Commissioner of Competition must be notified of all mergers that exceed certain size thresholds. Failure to notify is a criminal offence.

More information regarding the merger provisions of the Competition Act is contained in the Merger Enforcement Guidelines. The Bureau has information and a number of documents, including forms and a procedures guide for merger notification, available on the Bureau's Web site.

DISCLAIMER
Information contained in this section is of a general nature only and is not intended to constitute advice for any specific fact situation. For particular questions, the users are invited to contact their lawyer. For additional information, see contact(s) listed below.

New Brunswick Contact(s):
See National Contact.

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National Contact(s):
THIS CONTACT SERVES ALL REGIONS
Information Centre
Competition Bureau
Phase 1, Place du Portage
50 Victoria Street
Gatineau, Quebec  K1A 0C9
Telephone: 819-997-4282
Fax: 819-997-0324
Toll-free (information): 1-800-348-5358
TTY Toll-free (hearing impaired): 1-800-642-3844
E-mail: compbureau@cb-bc.gc.ca
Web site: http://www.competitionbureau.gc.ca/