Competition Tribunal Releases Its Decision In The CCS Merger Case

On June 15, the Competition Tribunal (Tribunal) released its decision in Commissioner of Competition v. CCS Corporation and ordered CCS Corporation (CCS) to divest the shares or assets of Babkirk Land Services Inc. (Babkirk). The Tribunal's decision addresses several important issues in merger cases, including the applicable test for a substantial prevention of competition, the assessment of the efficiencies defence and the determination of an appropriate remedy where a transaction (or proposed transaction) results in a substantial lessening or prevention of competition.

Background

In 2011, the Commissioner of Competition (Commissioner) applied for an order dissolving CCS' acquisition of Complete Environmental Inc. (Complete Environmental) or, in the alternative, requiring the divesture of assets to a purchaser that had been approved in advance by the Commissioner. In her application, the Commissioner argued that the merger prevented, or was likely to prevent,