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Order of Prohibition Issued Against Béton Régional Inc. and Béton Carrière Ltée Under the Competition Act
OTTAWA, February 1, 1995 — George N. Addy, the Director of Investigation and Research of the Bureau of Competition Policy, announced today that the Federal Court of Canada has issued an order of prohibition pursuant to subsection 34(2) of the Competition Act following an inquiry into the ready-mix concrete market in the Saguenay-Lac St-Jean region of the province of Quebec. The Attorney General of Canada applied for the order with the consent of one of the parties.
The first group of companies covered by the order are Béton Régional Inc., Béton Carrière Ltée and Pavex Ltée, all part of a group of companies controlled by Walter Bélanger (hereinafter "Bélanger Group").
The second group of companies involved in the Director's inquiry includes Bétonnière d'Arvida Inc., Bétonnière du Golfe Inc., Alma Mix Ltée, Inter Cité Construction Ltée, Bétonnière La Baie Ltée, Bétonnière Lac St-Jean Inc. and Pavage du Golfe Inc., all part of a group of companies controlled by Réal Riverin (hereinafter "Riverin Group"). The companies belonging to the Riverin Group are not covered by this order.
The inquiry focused on negotiations between the Bélanger Group and the Riverin Group for the merger of parts of their companies. In the course of their merger negotiations, the parties entered into an agreement on the sale prices of ready-mix concrete in the Saguenay-Lac St-Jean region. The order prohibits the Bélanger Group of companies from engaging in anti-competitive activities in the manufacture and sale of ready-mix concrete and concrete products. In addition, the order prohibits Béton Régional Inc. and Béton Carrière Ltée, in the event that they commence negotiations to complete a merger with any of the companies of the Riverin Group or with any other person, to enter into agreements concerning the prices of ready-mix concrete or concrete products or the allocation of customers prior to the completion of the merger.
"It is extremely important that parties to a proposed merger avoid co-ordinating their commercial activities prior to the completion of the merger," stated Mr. Addy. "Merger negotiations must not be used to shelter unlawful conduct."
Furthermore, in response to the Director's concerns regarding the inclusion in a proposed merger of market-sharing clauses for markets other than those covered by the merger, the companies are ordered not to enter into agreements containing such clauses without first obtaining the Director's approval.
The Bélanger Group and the Riverin Group, operating in the Saguenay-Lac St-Jean region, are involved in: the manufacturing and sale of ready-mix concrete and concrete products; highway construction; asphalt and related products; and gravel pits, sandpits and quarries. Some companies of the Riverin Group also operate in the Sept-Iles region.
For more information, please contact:
John Bean
953-7748
