Competition Bureau Reaches Consent Agreement with Superior Plus to Divest Propane Assets in Newfoundland

Ottawa, May 12, 2008 – The Competition Bureau announced today that it has reached a Consent Agreement with Superior Plus L.P. (Superior), resolving the Bureau’s competition concerns arising out of Superior’s proposed acquisition of certain assets of Irving Oil Limited and Irving Oil Marketing Limited (Irving).

"The Bureau is pleased that we were able to work cooperatively with the parties in this case and come to a mutually agreeable solution that remedied our concerns about the anti-competitive impacts of this transaction," said Sheridan Scott, Commissioner of Competition.

Following the Bureau’s review of the acquisition, it concluded that the transaction would likely result in a substantial lessening or prevention of competition in the markets for retail propane in Central and Western Newfoundland. In particular, the Bureau was concerned about an insufficient level of remaining competition post-merger and significant barriers to entry.

The parties claimed that efficiencies to be gained from the transaction would outweigh any anti-competitive effects. While the Bureau agreed that efficiency gains would likely arise from the transaction, it appeared unlikely that such gains would be sufficient to offset the substantial lessening or prevention of competition.

To resolve these concerns, the Bureau worked with the parties to design a remedy that would address its competitive concerns in the affected markets. Among other commitments, Superior has agreed to divest Irving’s bulk propane storage tanks located in Corner Brook and Grand Falls-Windsor.

The Competition Bureau is an independent agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

For media enquiries, please contact:
Marilyne Nahum
Communications Advisor
External Relations and Public Affairs Branch
819-953-9760

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Competition Bureau
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