The Federal Court of Appeal has dismissed a petition by Secure Energy Services, upholding the Competition Bureau's successful challenge of the merger of two rival suppliers of oilfield waste services.
Secure's appeal looked to overturn a recent decision by the Competition Tribunal that ordered the company to sell 29 facilities to resolve ongoing harm to competition in Western Canada.
The Tribunal concluded that there was a substantial lessening of competition in 136 local markets in the Western Canadian Sedimentary Basin (WCSB) as a result of Secure's merger with Tervita Corporation. The Tribunal also determined that Secure did not meet the requirements of the efficiencies defence which it invoked. Secure's appeal focused on the Tribunal's conclusions regarding the efficiencies defence.
In its decision, the Federal Court of Appeal found no merit in any of the issues raised by Secure in its appeal. The appeal was dismissed with costs to be awarded to the Bureau.
Upholding the Tribunal's decision protects competition for oil and gas waste services used by producers in the WCSB.
