Merger review in Canada
The Supreme Court has clarified merger review analysis
On 22 January 2015, the Supreme Court of Canada (SCC) released
its first decision in nearly 20 years regarding the Competition
Act's merger provisions. Its decision in Tervita Corp v
Canada (Commissioner of Competition) is important because (1)
it sets out the proper analytical framework for determining whether
a transaction substantially prevents competition, as
opposed to substantially lessens competition; and (2) it
clarifies the application of Canada's statutory
"efficiencies defence" to otherwise anticompetitive
mergers.
Background
Tervita, a waste-management services company in Western Canada,
owned and operated the only two secure landfills for oil and gas
hazardous waste in northeastern British Columbia when it acquired
Complete Environmental in January 2011. A subsidiary of Complete
Environmental owned the Babkirk site and a permit to operate a
secure landfill for oil and
