Competition Bureau Challenges Major Gas Retailer Merger

On April 30, 2015, the Competition Bureau filed an application to challenge a proposed merger between two major gas retailers, Parkland and Pioneer. Parkland proposed to acquire 181 gas stations and 212 supply contracts from Pioneer in 14 communities in Ontario and Manitoba.

The Bureau claimed that the proposed merger is likely to substantially lessen competition in the already concentrated relevant markets. The Bureau estimated that the combined post-merger market shares of Parkland and Pioneer in the 14 communities would be between 39 to 100 percent. The level of competition would also be affected by the significant increase in the extent, likelihood, frequency and duration of coordination among some or all of the suppliers in the markets.