Recent Developments in Canadian Merger Law

In March 2006, the Competition Bureau released a "Technical Backgrounder" outlining its analysis with respect to a merger involving Quebecor Media Inc. and Sogides Ltee, a publisher of French language trade books in Quebec.¹

According to the Backgrounder, the Bureau was not concerned that the merger would result in a sub- stantial prevention or lessening of competition in the publishing and distribution of French language trade books. However, in the course of its review, the Bureau learned that the president of Sogides (a Mr. Lesperance) had an interest in, and was a director of, a Quebec-based bookstore chain (Renaud-Bray) which competed against another chain of bookstores owned by Quebecor. The Bureau was concerned that this could lead to potentially anti-competitive information exchanges between the two bookstore chains, with Mr. Lesperance serving as the intermediary. Accordingly, the parties agreed (in a consent agreement registered with the Competition Tribunal) that: Mr.