Competition Bureau Requires Divestitures to Resolve Concerns with Canada Bread Acquisition of Multi-Marques

OTTAWA, October 12, 2001 — The Competition Bureau announced today that it is requiring divestitures to resolve competition concerns in the acquisition of Multi-Marques Inc. by Canada Bread Company Limited. After a thorough review, the Bureau has concluded that the transaction would likely result in a substantial lessening of competition in the supply of fresh bread and rolls to food service customers such as hospitals, restaurants, hotels, and other institutional accounts in the Maritimes.

"Our goal is to promote and maintain competition so Canadians can benefit from lower prices, product choice and quality services," said Robert Lancop, Assistant Deputy Commissioner of Competition. "Bread is an important part of most people's diet and protecting competition in the supply of this critical product is essential."

On January 22, 2001, Canada Bread, one of Canada's largest bakers, announced its intention to acquire the remaining 75% of Multi-Marques that it did not already own. In the Maritimes, Canada Bread owns Eastern Bakeries while Multi-Marques controls Ben's Limited.

As part of its settlement with the Competition Bureau, Canada Bread has provided enforceable Undertakings to divest approximately one third of the merged company's food service business to four bakeries currently operating in the Maritimes: Weston Bakeries Limited, McFadgen's Bakery Ltd., Snair's Golden Grain Bakery Inc. and W&E Gennoe Bakery Ltd. Canada Bread will also make available certain assets, such as trucks and transfer depots used in the delivery of fresh bread.

"This innovative, 'fix-it-first' remedy will speed the entry of Weston Bakeries into the food service business in the Maritimes while strengthening the three independent bakers thereby making them more effective competitors," said Robert Lancop, Assistant Deputy Commissioner of Competition. "Our remedy will benefit both food service operators and consumers. Another result of this resolution is that both Canada Bread and Weston Bakeries will now be capable of supplying fresh bread across Canada."

The Undertakings give the Competition Bureau the right to apply to the Competition Tribunal for a Consent Order to formalize the agreement if the Undertakings are breached. The terms of the Consent Order would be subject to approval by the Tribunal.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For more informations, Please communicate with  :

Eric Glaude
Agent in communications
Competition Bureau
Phone : 819-994-0349 or 613-296-2678 (cell.)

General Public Enquiries, please contact:

Competition Bureau's Information Center
819-997-4282 or toll-free 1-800-348-5358