Tervita Corp. V. Canada (Commissioner Of Competition), 2015 SCC 3

Tervita Corp. V. Canada (Commissioner Of Competition), 2015 SCC 3

This Supreme Court of Canada decision provides a measure of certainty to companies that intend to merge. It confirms the proper analytical framework for "prevention" merger reviews under the Competition Act, and the proper approach to the "efficiencies defence" exception.

Tervita Corp. operates two landfills for hazardous waste generated by oil and gas operations in northeastern B.C. In February 2010, Tervita acquired a company that held a permit for another landfill site. The transaction attracted the attention of the Commissioner of Competition, who initiated a merger review process, designed to identify mergers that will have anti-competitive effects. Ultimately, the Competition Tribunal ordered that Tervita divest itself of the acquired company, holding that the merger was likely to prevent competition and that Tervita did not bring itself within the "efficiencies" exception.