Acquisition of Cast North America Inc. by Canadian Pacific Limited Challenged Before the Competition Tribunal

OTTAWA, December 20, 1996 — Francine Matte Q.C., Acting Director of Investigation and Research under the Competition Act, announced today that an application has been filed with the Competition Tribunal with respect to a merger in the intermodal containerized shipping industry.

The application opposes the March 31, 1995 acquisition of Cast North America Inc. and related companies by Canadian Pacific Limited, its affiliates and subsidiaries.

The application alleges that the merger prevents or lessens, or is likely to prevent or lessen, competition substantially in the North Atlantic intermodal containerized shipping industry involving carriers operating between the Port of Montreal and Northern Continental Europe and the United Kingdom. The merged entities operate fully integrated intermodal container shipping services companies known as Cast and Canada Maritime.

"An efficient and competitive transportation network is essential to the competitiveness of the Canadian

economy. The port of Montreal, as the gateway for billions of dollars in international trade, is an important part of this network," said Ms. Matte. "Preserving competition in this sector will ensure that consumers, shippers and businesses will not face the prospect of paying higher prices for goods and services."

The Competition Act allows for an application to be filed with the Tribunal within three years of the date of the completion of a transaction.