Timely, or too soon? Competition Bureau releases guidance on “failing firm” claims in merger reviews

By Kevin Ackhurst (Toronto), Erika Woolgar and Alexane Samson on May 14, 2020 Posted in Antitrust, competition and regulatory, M&A

On April 29, in a rare decision based on the “failing firm” rationale, the Competition Bureau announced it would not challenge the acquisition of Total Metal Recovery (TMR) Inc. by American Iron & Metal Company Inc. (AIM), because TMR would have likely exited the market without the merger.

The Bureau released a detailed position statement on the transaction, which will assist parties seeking to rely on a “failing firm” argument. This will be particularly important in the wake of the COVID-19 economic downturn, as many businesses may face failure and seek to be acquired by a competitor if they cannot … Continue Reading

Competition Bureau Issues Additional Guidance on Competitor Collaboration During COVID-19 Pandemic

By Kevin Ackhurst (Toronto) and Anisha Visvanatha on April 9, 2020 Posted in Antitrust, competition and regulatory, M&A

Canadian businesses continue to face unprecedented challenges in light of the rapid spread of COVID-19. On March 20, the commissioner of competition provided some guidance for industry on the continuing application of the Competition Act to competitor collaborations, which we summarized in a recent bulletin. In short, the statement indicated that the Competition Bureau’s pre-existing analytical framework would continue to apply: agreements among competitors to fix prices, allocate markets or restrict output would be pursued criminally, but other agreements among competitors on matters outside these three areas would only be prohibited where they resulted, or were likely to result … Continue Reading

Competition law implications of M&A

By Sara Josselyn (Toronto) on December 16, 2015 Posted in Antitrust, competition and regulatory, Corporate finance

Ever wondered why competition regulators in both Canada and the US sometimes put the brakes on M&A deals? As mature markets become increasingly concentrated while smaller players are bought out and entities merge to achieve greater economies of scale, we continue to see headlines featuring the involvement of competition regulators in M&A transactions. But if we value the concept of ‘free markets,’ why are governmental bodies involving themselves in private transactions?

Adam Smith, one of the earliest proponents of modern capitalism, was a strong supporter of competition (antitrust) law. In his Inquiry Into the Nature and Causes of the Wealth … Continue Reading