Statement from the Commissioner of Competition: Tribunal issues interim order in the Parkland/Pioneer merger

June 3, 2015 — OTTAWA, ON — Competition Bureau

The Competition Tribunal has issued an interim order partially granting the Competition Bureau’s request for an injunction in the Parkland/Pioneer merger. This is the first time that the Tribunal has issued such an order on a contested basis in the context of a merger.

Until the Tribunal issues a final decision, the parties must preserve their retail gas assets as well as operate separately the Pioneer retail gas assets in the following communities: Bancroft, Kapuskasing and Tillsonburg, Ontario, as well as Neepawa, Lundar and Warren, Manitoba. The Tribunal declined to issue an injunction in the remaining eight communities in the Bureau’s application.

John Pecman, Commissioner of Competition, has issued the following statement on this matter:

"I welcome the Competition Tribunal’s decision to protect consumers and competition from potentially irreparable harm in six communities pending the determination of the challenge to the Parkland/Pioneer merger. Protecting consumers and competition from the harm that could occur in the retail gas sector is the driving force behind the challenge to the Parkland/Pioneer merger.

Taking action demonstrates the Bureau’s ongoing vigilance when it comes to mergers that raise serious competition concerns which could negatively impact Canadian consumers and businesses.

The Bureau is committed to principled enforcement and will continue to promote competition in the marketplace to the benefit of all Canadians."

Background

On April 30, 2015, the Bureau filed an application with the Tribunal for an order prohibiting the parties from proceeding with the transaction in the following 14 communities:

  • Aberfoyle, Ont.
  • Allanburg, Ont.
  • Bancroft, Ont.
  • Chelmsford/Azilda, Ont.
  • Gananoque, Ont.
  • Hanover, Ont.
  • Innisfil, Ont.
  • Kapuskasing, Ont.
  • Port Perry, Ont.
  • Tillsonburg, Ont.
  • Welland, Ont.
  • Lundar, Man.
  • Neepawa, Man.
  • Warren, Man.

This application is still before the Tribunal.

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