As discussed in a
previous post on this blog, a merger or acquisition will be
barred where it is found to prevent or substantially lessen
competition in a market (Competition Act, s. 92(1)). The
Commissioner's ability to apply to the Competition Tribunal
(the Tribunal) to inhibit a merger or acquisition
applies to both proposed and completed transactions (Competition Act, s. 92(1)). Although
formal approval is not required to close a transaction, the
Competition Act (the Act) sets out
mandatory and voluntary steps that parties to a merger or
acquisition should consider before closing:
1. Consider whether the proposed transaction is
notifiable
The purpose of making certain transactions notifiable is to
provide the Commissioner with sufficient time to review a
transaction and to avoid the dissolution of a completed merger
later found to be anti-competitive. The Act prescribes two
thresholds, one based on the size of the parties and the other
based on the size of
