Copyright 2010, Blake, Cassels & Graydon LLP
Originally published in Blakes Bulletin on Competition, Antitrust & Foreign Investment, September 2010
Strategic mergers in Canada may soon face new rules when under review by the Competition Bureau. The Bureau recently announced that it is considering revisions to Canada's Merger Enforcement Guidelines (MEGs). Merger enforcement guidelines are an important source of guidance in getting mergers completed where they are likely to raise competition issues.
The Bureau plans to hold a series of roundtables to explore the merits of revising the MEGs. The roundtables will consider whether the MEGs reflect current Bureau practice and whether changes to the MEGs are warranted in light of evolving views on how to assess the competitive effects of mergers, as reflected in the newly revised U.S. merger enforcement guidelines, and in light of the evolution of the dynamic changes to both Canadian industries and the analytical approach taken to assess mergers between competitors.
One issue that undoubtedly will arise in consultations is the degree to which Canada should harmonize its MEGs with the U.S. guidelines. While harmonization may facilitate consistent Canadian and U.S. reviews in cross-border cases, it will be important for changes to appropriately reflect important statutory and economic differences in Canadian merger review, including the use of the uniquely Canadian efficiencies defence to anticompetitive mergers.
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