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ARTICLE · 16 SEPTEMBER 2014

Eastlink And Bruce Telecom Abandon $26.5M Merger Amid Competition Bureau Concerns

On August 15, 2014, the Competition Bureau announced that Bragg Communications Inc. and Bruce Telecom had terminated an announced merger.

CanadaAntitrust/Competition Law

On August 15, 2014, the Competition Bureau (the Bureau) announced that Bragg Communications Inc. (Eastlink) and Bruce Telecom had terminated an announced merger, which would have resulted in the acquisition of Bruce Telecom (the incumbent telecommunications provider for a large portion of Bruce County, Ontario) by Eastlink (a privately-held company that owns and operates cable systems across Canada), for a purchase price of C$26.5 million.

Eastlink's decision to terminate followed a review by the Bureau's Mergers Branch, pursuant to which the Bureau concluded that the acquisition would likely have resulted in a substantial lessening or prevention of competition in the towns of Port Elgin and Paisley, Ontario, where Eastlink and Bruce Telecom are the only current providers of wireline telecommunications services. Although the merger did not meet the thresholds for notification to the Bureau, it was brought to the Bureau's attention as a result of several consumer

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