Canada: Supreme Court allows blocked merger in landfill case

The Supreme Court of Canada has concluded that the acquisition of a hazardous waste site in northeastern British Columbia should be permitted to go ahead, overruling previous decisions by the Federal Court of Appeal and the Competition Tribunal.

The case arose after the Competition Tribunal ordered Tervita’s predecessor, CCS Corporation, to divest itself of a proposed B.C. landfill site on grounds that the transaction would lead to a substantial prevention of competition in the market.

However the landfill in question was not yet operational. The commissioners view on competitive harm would them refer to future harm and not prevent competition in the markets as they stood at the time of the transaction.

The SCC overturned the earlier rulings ordering the diverstirure. The decision could make it easier for merging companies in the future to convince the Competition Bureau that swallowing up a rival should be allowed because it creates “efficiencies.”

Full Content: Financial Post

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