Canada: Tervita Corp v Canada – The Supreme Court of Canada’s First Merger Decision in 17 Years: An Efficient Outcome

Overview

In 2011 the Competition Bureau brought the first contested merger challenge to the Competition Tribunal in seven years.¹ After both the Tribunal and the Federal Court of Appeal upheld the Commissioner's challenge the merging parties appealed to the Supreme Court of Canada (the "SCC"). In January 2015 the SCC released its reasons,² overturning the decisions below and allowing the merger on the basis of the Competition Act's efficiencies defence.

This is the first Supreme Court merger jurisprudence in seventeen years – and the first to explore the merger efficiency defense provisions of the Competition Act. It also explores issues in relation to substantial prevention of competition rather than the more common substantial lessening of competition.

^{1 Commissioner of Competition v CCS Corporation, Complete Environmental Inc, Babkirk Land Services Inc, Karen Louise Baker, Ronald John Baker, Kenneth Scott Watson, Randy John Wolsey, and Thomas Craig Wolsey, CT-2011-002 (Comp Trib).}

^{2 Tervita Corp v Canada (Commissioner of Competition), 2015 SCC 3 [SCC Decision].}

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The foregoing provides only an overview and does not constitute legal advice. Readers are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained.

© McMillan LLP 2015