Taking Regulatory Risk Off The Table

Originally published in Blakes Bulletin on Business Law, January 2007

In the high stakes world of mergers and acquisitions, the consequences of getting things wrong on the regulatory front are increasing. Where a transaction raises significant issues for the Competition Bureau (Bureau), its review can add millions of dollars to the cost of a deal, cause delays of up to five months, and even result in the transaction being blocked in whole or in part. Moreover, the Bureau can challenge a transaction for up to three years after it has closed and ultimately require its dissolution. The Competition Act contains mandatory pre-merger notification requirements for certain transactions and substantive merger review provisions that apply to all transactions. The purpose of the substantive review is to determine the likelihood of a merger substantially preventing or lessening competition in one or more relevant markets. Due