Canadian Competition Bureau Revises Pre-Merger Notification Guidance On Acquisitions By Creditors

The pre-merger notification requirements of the Canadian Competition Act (Act) contain an exemption for certain types of acquisitions by creditors. In late October, the Competition Bureau revised one of its pre-merger notification interpretation guidelines (originally issued in 2011) to confirm that the exemption may apply to a realization on a debtor's collateral by assignees of the original creditor's interest.

An acquisition of any assets in Canada of a Canadian operating business may require prior notification to the Bureau, as well as compliance with or waiver of a waiting period, when (i) the assets either have a book value in excess of $88 million or generated annual gross revenues from sales in or from Canada in excess of $88 million; and (ii) the parties together with all their affiliates have either assets in Canada with a book value in excess of $400 million or gross revenues from sales in, from or into Canada in excess of $400 million.