The Competition Bureau has reached an interim agreement with American Iron & Metal Company Inc. (AIM) to preserve specific assets while it pursues an investigation into AIM’s acquisition of Total Metal Recovery (TMR) Inc.
The Bureau is concerned that the transaction may result in a substantial lessening or prevention of competition in the purchase, collection and processing of scrap metal, and/or the supply of processed scrap metal in Quebec. AIM and TMR both operate neighbouring scrap metal facilities in the Montreal area.
Under the terms of the agreement registered with the Competition Tribunal, AIM is required to preserve the assets it will acquire from TMR for a period of 60 days. AIM must maintain the viability and marketability of these assets throughout this period.
The agreement prevents AIM from selling TMR assets, among other actions, while the Bureau pursues its investigation. In the event that the Bureau’s investigation were to conclude that the acquisition of TMR by AIM would likely result in a substantial lessening or prevention of competition, the Bureau may seek the sale of the TMR assets to a suitable purchaser as an appropriate remedy.
The Bureau remains committed to using all of the tools at its disposal to carry out its investigations.
Headquartered in Montreal, Quebec, AIM is a family-owned company with business interests that include metal recycling, dry material recycling, manufacturing of solder assemblies, demolition and decommissioning, environmental services and retail auto parts.
AIM and TMR own and operate facilities that process ferrous and non-ferrous scrap metals, including large shredders and related assets located in Laval, Quebec.
The agreement has the effect of a court order pursuant to sections 100 and 105 of the Competition Act.
The interim consent agreement takes effect immediately. The 60-day preservation period commences upon closing of the transaction.
AIM has represented that it is necessary to close the transaction immediately because TMR is in serious financial difficulty and has significantly reduced its operations.