Merger Control in Canada

Introduction

Merger control in Canada ensures that corporate transactions do not substantially lessen competition. The regulatory framework requires pre-merger notification for qualifying transactions.

Notification Thresholds

Transactions must be notified to the Competition Bureau if they meet certain financial thresholds. These typically consider transaction value, turnover of the parties, or market shares.

Substantive Test

The substantive test is whether the transaction would substantially lessen competition. Factors considered include market concentration, barriers to entry, countervailing buyer power, and efficiencies.

Remedies

When a merger raises competition concerns, authorities may accept structural remedies (divestiture) or behavioral remedies (commitments to supply competitors).

Conclusion

Merger control ensures that market concentration does not harm competition while allowing beneficial business combinations.