On February 7, 2014, the Competition Bureau released a Position Statement summarizing the approach
taken in its review of the acquisition by Canadian Tire, through
its wholly-owned affiliate FGL Sports, of Pro Hockey Life. The
transaction was entered into on November 28, 2013, and closed on
August 12, 2013. The Bureau determined that the transaction was not
likely to substantially lessen or prevent competition in the retail
market for hockey equipment and hockey-related merchandise.
The transaction provided the Bureau with the opportunity to
review a retail merger between retailers carrying on business using
three different business models: Canadian Tire is a national mass
merchandiser selling products, through a network of independent
dealers, across a range of categories; FGL Sports is a national
sporting goods retailer; and Pro Hockey Life is a specialized
hockey retailer with a geographic presence limited to 11 areas in
In reviewing the transaction, the Position Statement notes that
the Bureau reviewed internal documents, met with a number of market
participants and issued section 11 orders to gather information
from key suppliers.
Consistent with the approach taken in recent retail mergers, the
Bureau's review consisted of various econometric analyses to
quantify the estimated price effects of the merger. The Bureau
compared prices using a cross-sectional analysis to quantify the
competitive impact that Pro Hockey Life had on FGL Sports stores.
The analysis showed that the difference in prices at FGL Sports
Stores in areas where there was no Pro Hockey Life were not
statistically significant. The Bureau also used merger simulation
The Bureau considered other factors set out in the Merger Enforcement Guidelines, such as the
presence of remaining competitors and barriers to entry. The Bureau
determined that, given the presence of remaining competitors and
the fact that barriers to entry and expansion are not likely
sufficiently high to deter entry or expansion, the parties would
not likely be able to sustain a material price increase.
Stikeman Elliott LLP acted as competition counsel to Canadian
Tire and FGL, with a team consisting of Lawson Hunter, Jeffrey
Brown and Marisa Muchnik.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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