Lakeport/Labatt Finally Concludes: No Challenge From Competition Bureau

The announcement by the Competition Bureau on January 16, 2009 that it has concluded there is insufficient evidence to challenge the acquisition of Lakeport Brewing Income Fund (Lakeport) by Labatt Brewing Company (Labatt) brings to an end one of the most heated skirmishes in the annals of Canadian competition law. The outcome of what could be among the lengthiest merger reviews in Canadian legal history may well result in support by the Government for less judicial oversight of the merger review process, and for longer waiting periods, with a proposed move to US-style second request procedures.¹

Background

The acquisition of Lakeport by Labatt was first proposed in January 2007, following closely on the heels of another acquisition, during which the Competition Bureau had reviewed Ontario beer markets in some detail. In February 2007, the Competition Bureau obtained court orders against eleven parties, requiring them to produce significant additional documents