Showdown At The Efficiencies Corral: Canada's Competition Bureau Clears Another Anti-Competitive Merger

The Competition Bureau recently cleared the proposed acquisition of Canexus Corporation by Chemtrade Logistics Income Fund despite concluding that the transaction was likely to result in a substantial lessening or prevention of competition. Despite these concerns, the bureau found that the expected efficiencies resulting from the deal would likely significantly outweigh the anti-competitive effects. This is the second time a transaction involving the acquisition of Canexus has been cleared on this basis and confirms the bureau is willing to undertake the efficiencies analysis itself rather than refer the matter to the Competition Tribunal for determination.

Background to the Canexus review