Canada's Competition Bureau Releases Draft Model Timing Agreement For Merger Efficiencies Claims

Canada's Competition Bureau has released a draft model timing agreement for mergers where the parties wish to raise efficiencies claims. For context, Canada's efficiencies defence provides that no remedy may be imposed in respect of a merger that substantially lessens competition when the efficiencies arising from the merger would outweigh the anticompetitive harm.

In addition to agreeing not to close without providing at least 30 days' notice to the Bureau, the draft timing agreement contemplates that parties that seek to raise the efficiencies defence with the Bureau will agree to:

• Effectively decide whether to pursue the efficiencies defence at an early stage of the review (and before the parties know whether the Bureau will be asserting that the merger will result in lessening competition, an approach that is likely to present practical challenges).