GATINEAU, QC - Competition Bureau
The Commissioner of Competition welcomes a recent ruling from the Federal Court of Appeal (FCA) which confirms that the Competition Tribunal has the power to temporarily block mergers in urgent circumstances.
The Commissioner had appealed a July 2021 decision related to the Competition Bureau's ongoing challenge of a merger between rival oil and gas waste service providers Secure and Tervita.
On June 29, 2021, the Commissioner filed applications under section 92 and 104 of the Competition Act to block the transaction and to obtain an injunction preventing the closing of the transaction, respectively. The Bureau requested the Tribunal issue an order to prevent the companies from completing the merger until the 104 injunction application could be heard and decided; however, the Tribunal concluded that it lacked the power to grant the temporary relief requested. The merging parties closed the transaction shortly thereafter.
In its decision, the FCA determined that the Tribunal erred in its conclusion - meaning that, as appropriate, it does have the power to prevent the closing of a transaction until an application for an interlocutory order can be heard in full.
In future, the Bureau will continue to use all of the tools at its disposal in keeping with its mandate to protect competition and the public interest.
