As previously discussed in our
Refresher on the Failing Firm Defence, many companies will be
facing insolvency or bankruptcy in the aftermath of COVID-19. This
could lead to a situation in which financially stronger companies
want to purchase struggling competitors. In this context, it is
likely that the Competition Bureau will be asked to approve
otherwise "problematic" mergers on the basis of what is
commonly known at the "failing firm" defence.
On April 29, 2020, the Bureau issued a Position Statement providing additional
guidance on the failing firm defence and, in particular, the types
of information that are most relevant for a timely and efficient
analysis of a failing firm. The key aspects of this guidance are
summarized in this blog post.
