Merger Intelligence and Notification Unit – Update on Key Statistics 2019‑2020
Note: The statistics and views provided in this document were compiled by the Competition Bureau's Merger Intelligence and Notification Unit for the 2019-2020 fiscal year. They are not representative of the Bureau's performance data as a whole. For comprehensive performance data see the Bureau's Performance Measurement & Statistics Report 2019-20.
On this page
- Annual filings and reviews started
- Case load – concluded reviews statistics
- Update on merger intelligence work
This document summarizes the number and characteristics of merger reviews started and concluded by the Competition Bureau's Mergers Directorate in the 2019-2020 fiscal year. In past years, the Merger Intelligence and Notification Unit (MINU) has presented similar information at the Mergers Roundtable hosted by the Canadian Bar Association's Mergers Committee and the Bureau's Mergers Directorate.
Annual Filings and Reviews Started
Figure I: Total Annual Notification & ARC Request Filings
Total Annual Notification & ARC Request Filings Year Total Filings 2010-2011 219 2011-2012 207 2012-2013 214 2013-2014 217 2014-2015 240 2015-2016 212 2016-2017 217 2017-2018 229 2018-2019 197 2019-2020 230
Figure I identifies the annual number of filings (including pre-merger notifications and requests for an Advance Ruling Certificate (ARC)) since 2010-2011. The number of filings in 2019-2020 was 230, which represents an increase of 17% over the previous fiscal year. In total, the Bureau started 243 reviews in 2019-2020, including 13 reviews with an origin of "Other"Footnote 1.
Figure II: 2019-2020 Monthly and Quarterly Notification & ARC Request Filings
2019-2020 Monthly and Quarterly Notification & ARC Request Filings Quarter Month Filings per month Q1=58 Apr 18 May 20 Jun 20 Q2=62 Jul 23 Aug 21 Sept 18 Q3=60 Oct 14 Nov 26 Dec 20 Q4=50 Jan 22 Feb 13 Mar 15
Figure II identifies the number of filings in each month and quarter for 2019-2020. The number of filings was relatively stable between quarters in 2019-2020. The number of filings in each quarter of 2019-2020 was higher than the equivalent quarter in the previous year.
Case Load – Concluded Reviews Statistics
|Number of reviews concluded||Non-Complex||168||142||161|
|Percentage of reviews concluded||Non-Complex||75%||68%||70%|
|Number of reviews where the service standard was met||Non-Complex||165||142||155|
|Percentage of reviews where the service standard was met||Non-Complex||98%||100%||96%|
|Average review length (days)||Non-Complex||10.93||10.35||10.62|
Table I sets out reviews concluded in 2019-2020 and the two previous fiscal years. It includes breakdowns by complexity and whether the Bureau met its service standards. The Bureau met its service standard in 98% of non-complex and 93% of complex reviews. The percentage of service standards met for all reviews remained consistent year over year at 97%. Average non-complex reviews lasted 10.93 days, while the average complex review lasted 36.18 days. The average length of reviews for complex reviews has decreased consistently since 2017-2018.
Figure III: 2019-2020 Completed Reviews Sector Breakdown
2019-2020 Completed Reviews Sector Breakdown North American Industry Classification System (NAICS) BREAKDOWN Other 49% Lessors of Real Estate 23% Oil and Gas Extraction 6% Electric Power Generation, Transmission and Distribution 5% Metal Ore Mining 4% Software Publishers 3% Depository Credit Intermediation 3% Insurance Carriers 2% Other specialty trade contractors 2% Meat Product Manufacturing 2% Basic Chemical Manifacturing 2% Computer systems design and related services 2%
The Mergers Directorate assigns a four-digit North American Industry Classification System (NAICS) to each merger it reviews according to the industry sector involved. Figure III represents the sectors most frequently reviewed by the Mergers Directorate in 2019-2020. That year, the most frequently reviewed sector was Lessors of Real Estate, which made up approximately 23% of completed reviews. In 2018-2019 this sector represented 11% of completed reviews. In 2018-2019 the most frequently reviewed sector was Upstream Oil & Gas, which represented 13% of completed reviews in 2018-2019, and 6% in 2019-2020.
|ARCs Issued in non-complex concluded reviews||103||91||89||115|
|Percentage of non-complex concluded reviews in which the Bureau issued ARCs||61.3%||64.1%||55.3%||68.0%|
|No action letters (NALs) issued in non-complex concluded reviews||64||49||72||54|
|Percentage of non-complex concluded reviews in which the Bureau issued NALs||38.1%||34.5%||44.7%||32.0%|
|Supplementary Information Requests (SIRs) issued in concluded and ongoing reviews||13||10||10||21|
|SIRs issued in concluded reviews||9||13||13||-|
|Percentage of total concluded matters filed in which the Bureau issued SIRs||4.0%||6.2%||5.6%||-|
|Reviews Concluded with IssuesFootnote 3||5||5||7||9|
|Consent Agreements issued||2||5||6||8|
|Position Statements issued||3||6||7||17|
Table II sets out the outcomes for concluded reviews in 2019-2020, as well as in the three prior fiscal years. In 2019-2020, the Bureau issued 13 SIRs. SIRs were issued in nine of the reviews that concluded in 2019-2020. Five reviews were concluded with issues in 2019-2020, which is consistent with the previous fiscal year. The Mergers Directorate issued three position statements in 2019-2020, and also published a Report to the Minister of Transport and the parties to the transaction pursuant to subsection 53.2(2) of the Canada Transportation Act.
Update on Merger Intelligence Work
As announced September 2019, the MINU continues its increased focus on intelligence gathering. In the first year since the expansion of its role, the MINU has collected valuable data, and has experienced an increase in engagement from a variety of stakeholders.
The MINU's intelligence work has led to a number of reviews of non-notifiable transactions that were potentially concerning and where there was no evidence that the parties intended to engage with the Bureau prior to closing. In particular, the MINU became aware of the acquisition of PeroxyChem Holding Company LLC by Evonik Industries AG. The Bureau's review of this transaction ultimately led to a Consent Agreement filed with the Competition Tribunal in January 2020, requiring the divestiture of assets in British Columbia to remedy competition concerns.
The MINU continues to refine its information-gathering sources and processes. To date, its intelligence gathering has been a valuable source of information on non-notifiable transactions in Canada and a catalyst for increased stakeholder engagement across a variety of industries.
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