Supreme Court of Canada Allows Challenged Merger to Proceed on Efficiency Grounds

The Supreme Court of Canada (SCC) recently reversed a decision of the Federal Court of Appeal (FCA) that had dismissed an appeal from an order of the Competition Tribunal (Tribunal) requiring Tervita Corporation to divest the Babkirk hazardous waste landfill site following its acquisition of Complete Environmental Inc.  A majority of the SCC found that the efficiencies defense to otherwise anticompetitive mergers applied based on the evidence available to the Tribunal and that the proven efficiency gains resulting from the merger (even though minimal) were greater than, and offset, any proven anti-competitive effects.  This is the SCC’s first decision considering the substantive merger provisions of the Competition Act in nearly 20 years, and it provides a more certain framework for assessing the potential anticompetitive effects of a merger under that statute.

With the permission of Davies Ward Phillips & Vineberg LLP, we are pleased to provide a more detailed discussion of the court’s decision. Please read the full article here.