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ARTICLE · 25 NOVEMBER 2013

Termination Of Franchise Agreements Required In Minority Interest Acquisition

Stikeman Elliott LLP
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On November 1, 2013, the Competition Bureau (the Bureau) announced a Consent Agreement with La Coop fédérée (LCF) and Groupe BMR (BMR) in relation to LCF’s acquisition of a minority interest in BMR.

CanadaAntitrust/Competition Law
Stikeman Elliott LLP
Stikeman Elliott LLP
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On November 1, 2013, the Competition Bureau (the Bureau) announced a Consent Agreement with La Coop fédérée (LCF) and Groupe BMR (BMR) in relation to LCF's acquisition of a minority interest in BMR. A position statement was released on November 13, 2013, outlining the Bureau's analysis of the proposed merger.

Under the terms of the Consent Agreement, LCF and BMR are required to (i) terminate franchise agreements with certain retail store franchisees in four Quebec regions; and (ii) continue to supply these franchisees on competitive terms until a new franchisor is found or until December 31, 2014. In essence, the Consent Agreement will require the affected franchisees to find new competitor banners under which to carry on their retail businesses in these regions or to otherwise carry on business independently of LCF and BMR.

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