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ARTICLE · 16 MAY 2005

Proposed Amendments To Change Review Process For Transportation Mergers

Davies Ward Phillips & Vineberg LLP
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The Canadian government has tabled draft amendments to the Canada Transportation Act that would introduce a new "public interest review process" for mergers and acquisitions involving federally regulated "transportation undertakings."

CanadaTransport
Mark Katz
Mark Katz
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Published in the 10 May 2005 issue of Competition Law Insight

The Canadian government has tabled draft amendments to the Canada Transportation Act that would introduce a new "public interest review process" for mergers and acquisitions involving federally regulated "transportation undertakings." These proposed amendments, contained in Bill C-44, form part of a larger package of changes to the Canada Transportation Act that are designed, in the words of the Canadian Minister of Transport, to "improve the efficiency of the rail and air sectors, enhance competition, help protect the environment and provide a stable framework for investment."

Under the current regime, acquisitions involving the transport sector are generally subject to the standard merger review process under the Competition Act. The one exception is for mergers in the airline industry, which were made subject to a special merger review process under the Transportation Act following Air Canada’s acquisition of Canadian

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