The thresholds for review of acquisitions involving Canadian
businesses will soon increase under both the Competition Act and
the Investment Canada
Act.
The Competition Bureau (Canada) announced on February 7, 2012
that, effective February 11, the pre-merger notification
transaction-size threshold for 2012 will increase to Cdn$77 million
from the 2011 threshold of Cdn$73 million. The threshold is based
on the book value of assets in Canada of the target (or in the case
of assets, of the assets in Canada being acquired), or the gross
revenues from sales "in or from" Canada generated by
those assets, calculated in accordance with the Notifiable Transactions
Regulations under the Competition Act.
After February 11, 2012, the Competition Bureau must generally be
given advance notice of proposed transactions when the acquired
assets in Canada or revenues generated in or from Canada exceed $77
million, and when the combined Canadian assets or revenues
"in, from or into"
