The Canadian Competition Bureau announced Thursday, January 31, that the 2019 pre-merger notification threshold relating to transaction size will increase to CAD$96 million (US$73.3 million) from the 2018 threshold of CAD$92 million (US$70.3 million).
Once the 2019 threshold is in effect, the Competition Bureau must generally be given advance notice of proposed transactions when the target’s assets in Canada or revenues from sales in or from Canada generated from those assets exceed CAD$96 million (US$73.3 million), and when the combined Canadian assets or revenues of the parties and their respective affiliates in, from or into Canada exceed CAD$400 million (US$305.5 million).
Under the Competition Act, mergers of all sizes and in all sectors of the economy are subject to review by the Commissioner of Competition. The Act requires that companies notify the Commissioner if proposed mergers, acquisitions, and other proposed business transactions meet certain thresholds. The Commissioner reviews these notifiable transactions to determine if they are likely to prevent or lessen competition substantially.