Merger remedies

Remedies are required when a merger or proposed merger is likely to prevent or lessen competition substantially in one or more relevant markets. In such cases, the Commissioner of Competition will take remedial action to prevent a merged entity, alone or in coordination with other firms, from having the ability to exercise market power, as a result of the merger. When the Bureau believes that a merger is likely to prevent or lessen competition substantially, it can either apply to the Competition Tribunal to challenge it under section 92 of the Competition Act, or negotiate remedies with the merging parties in order to resolve the competition concerns by consent.

The Bureau has issued certain guidance documents to clarify its approach to merger remedies:

Information bulletin on merger remedies in Canada

The Bulletin provides guidance to businesses and legal counsel on the objectives and general principles applied by the Bureau when it seeks, designs, and implements remedies to resolve competition concerns arising from proposed transactions.

Mergers consent agreement template

This template provides insight into the Bureau’s expectations when negotiating measures to address competitive issues likely to arise from a proposed merger. It reflects the general practice of the Bureau and is intended to provide a general framework.

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