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Archived — Competition Bureau requires significant divestitures in waste services merger

OTTAWA, June 29, 2010 — The Competition Bureau announced today that it has reached an agreement with IESI-BFC Ltd. (BFI) and Waste Services Inc. (WSI) that resolves the competition concerns raised by their proposed merger. The agreement requires divestitures of commercial waste collection assets of WSI in five Canadian cities to preserve competition in these markets.

Under the terms of a Consent Agreement filed with the Competition Tribunal, BFI and WSI will divest commercial waste collection assets, including customer contracts, vehicles, bins and other equipment in each of Calgary, Edmonton, Hamilton, Ottawa and Simcoe County. BFI and WSI will also divest WSI's commercial waste transfer station located in Hamilton. These divestitures address the Bureau's concern that the proposed transaction would result in a substantial lessening or prevention of competition in the supply of commercial waste collection services in these markets.

"The Bureau is satisfied that these remedies address our concerns," said Melanie Aitken, Commissioner of Competition. "We are committed to ensuring that Canadians benefit from vigorous competition in all industry sectors, and this agreement meets this objective with respect to commercial waste collection services in a number of local markets."

Mergers in Canada are subject to review by the Competition Bureau under the Competition Act to ensure that they will not result in a substantially lessening or prevention of competition. The merger review process involves collecting information from, and conducting interviews with, a wide range of industry participants, including the parties, suppliers, competitors, customers and industry experts.

The full text of the Consent Agreement filed with the Competition Tribunal will be available shortly on the Tribunal's Web site.

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


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