Competition Bureau Releases Model Timing Agreement For Efficiencies Cases

On May 21, 2020, the Canadian Competition Bureau (Bureau) released the final version of its Model Timing Agreement for Merger Reviews involving Efficiencies (Model Timing Agreement), which will have important implications for complex mergers involving efficiencies claims. This follows the release of a draft of the Model Timing Agreement for public consultation on July 16, 2019.

KEY TAKEAWAYS

• The Canadian Competition Act contains a defence for mergers likely to bring about efficiencies gains that outweigh any anti-competitive effects
• The Bureau's Model Timing Agreement will require merging parties—who agree—to delay closing if they wish the Bureau to assess whether the efficiencies defence applies prior to initiating any challenge—interim or permanent—to the transaction