July 17, 2019
Practical Law Canada has published a New Legal Update, which discusses the recent decision by the Canadian Government to approve, subject to conditions pursuant to the Canada Transportation Act, the merger of First Air and Canadian North airlines in northern Canada. This approval is notable in that it comes after a Competition Bureau report that concluded that the merger would be anticompetitive. As such, this case highlights the two-track merger review regime in Canada for certain transportation sector mergers and serves as an important reminder that the federal Cabinet, not the Competition Bureau, has the ultimate authority regarding whether to approve such mergers.
Below is an excerpt with a link to the full Update.
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On June 19, 2019, the Government of Canada issued a news release announcing its approval, subject to terms and conditions pursuant to the Canada Transportation Act, S.C. 1996, c. 10 (CTA), of the merger of First Air and Canadian North airlines in northern Canada. The decision is notable in that it follows a review and report (Report) by Competition Bureau (Bureau), which concluded that the merger would be anticompetitive. As such, this case highlights the unique two-track merger review regime in Canada that may apply to certain transactions involving transportation undertakings. While the views of the Bureau are important, it is the federal Cabinet that has the final authority over whether to approve a transportation merger subject to CTA merger review. This legal update discusses how the CTA merger review process was applied to the First Air-Canadian North merger and considers the implications of the CTA process going forward.
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For the full Update, see: Canadian Government Approves Airline Merger in Northern Canada, Despite Competition Bureau Concerns).
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