Archive for the 'Competition Bureau' Category
The Commissioner of Competition, Melanie Aitken, addressed current enforcement priorities in two engaging and wide-ranging talks in Vancouver this evening: a keynote speech at a reception hosted by the University of British Columbia, National Centre for Business Law at the Four Seasons and a Vancouver Competition Policy Roundtable meeting organized by Professor Tom Ross of the Sauder School of Business.
TMX News Release (November 29, 2011)
“The Commissioner advised Maple and TMX Group that she has serious concerns about the likely competitive effects of the proposed transactions in the current environment, primarily in connection with equities trading and clearing and settlement services in Canada.
The Commissioner indicated that she has not reached a final conclusion and that her current views may be affected by further factual information and developments, which may include changes in the applicable securities regulatory regime, and any commitments or other remedial measures that Maple may be prepared to take to address her concerns.
Maple and TMX Group intend to continue to work closely with staff of the Competition Bureau to address the Commissioner’s concerns, including by identifying appropriate remedial measures. As Maple has stated previously, it is committed to working constructively with all of the relevant regulators, including Canadian securities regulators, to address any questions they may have so that the proposed transactions can proceed in the best interests of TMX Group, its shareholders and the Canadian capital markets. Maple and TMX Group continue to strongly believe that the proposed transactions will substantially benefit all capital market participants.”
The National Competition Law Section of the Canadian Bar Association has published the most recent issue of the Canadian Competition Law Review (2011 – Vol. 24 No. 1) (formerly the Canadian Competition Record) (see: Canadian Competition Law Review – 2011 – Vol. 24 No. 1).
This issue of the Canadian Competition Law Review includes articles and comments on indirect purchaser class actions, the institutional design of Canadian competition policy, the Competition Tribunal, the U.S. Horizontal Merger Guidelines, the treatment of buying-side agreements under the amended section 45 of the Competition Act and injunctions in misleading advertising cases.
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Reuters Canada, Canadian Business, the Wall Street Journal and other media have reported that the Competition Bureau has issued a “no action” letter clearing Rio Tinto’s Cdn. $654 million friendly takeover offer for junior uranium developer Hathor Exploration.
In making the announcement, Rio Tinto said in its press release:
“Rio Tinto yesterday received Canadian Competition Bureau clearance for its offer, made through an indirect wholly-owned Canadian subsidiary, to acquire all the common shares of Hathor Exploration Limited (“Hathor”) for C$4.70 in cash per common share.
The Commissioner of Competition issued a ‘no action letter’ which constitutes compliance with all requirements of the Competition Act (Canada) in relation to Rio Tinto’s offer for Hathor.
Rio Tinto’s recommended offer values Hathor at approximately C$654 million on a fully-diluted basis and represents a premium to the unsolicited revised offer of Cameco Corporation’s of C$4.50 per common share of Hathor made on 14 November.
Hathor’s board of directors unanimously recommends that Hathor shareholders accept and tender their common shares to Rio Tinto’s offer which is open for acceptance until 5:00pm (Toronto time) on 30 November 2011, unless extended or withdrawn in accordance with its terms.”
See: Rio Tinto Receives Canadian Competition Bureau Clearance for its Offer for Hathor Exploration.
“No action letters” are one of two types of merger clearance (the other being Advance Ruling Certificates, or “ARCs”) available under the Competition Act. Unlike an ARC, however, where a no action letter is issued, the Commissioner may challenge the transaction for up to one year post-closing (a period recently shortened from three years as a result of 2009 amendments to the Competition Act).
Rio Tinto’s $4.70 per-share offer for Hathor, which it raised last week, expires November 30th.
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On November 22, 2011, the Competition Bureau announced that criminal charges had been laid against six companies and five individuals accused of rigging bids for provincial and municipal contracts for sewer services in the Montreal area (see: Competition Bureau Exposes Sewer Services Cartel in Quebec and Backgrounder – Competition Bureau Exposes Sewer Services Cartel in Quebec).
In making the announcement, the Bureau said:
“The evidence gathered by the Bureau reveals that the companies secretly agreed to coordinate their bids to pre-determine the winners of municipal and provincial contracts for the cleaning and maintenance of sewers.
‘This bid-rigging scheme misled officials into believing that tendering processes were competitive,’ said Melanie Aitken, Commissioner of Competition. ‘In reality, those charged had submitted token bids designed to ensure that a pre-determined company would win the contracts. The scheme deliberately evaded requirements created to protect taxpayer dollars in the government procurement process.’”
November 10, 2011
We are pleased to announce the forthcoming publication by Carswell this fall of The Competition Law Guide for Trade Associations in Canada jointly authored by Steve Szentesi and Mark Katz.
On November 10, 2011 the C.D. Howe Institute issued a report reviewing the Competition Bureau’s (the “Bureau”) enforcement of the criminal conspiracy offences of the Competition Act, its enforcement in relation to strategic alliances and policies regarding the issuance of binding advisory opinions.
The C.D. Howe Institute’s Competition Policy Council (the “Competition Council”), which held its second meeting on November 3, 2011 and provides “analysis of emerging competition policy issues, including those potentially faced by the federal Competition Bureau”, addressed the following questions:
1. How can competition policy legislation and enforcement discourage truly anti-competitive agreements without discouraging healthy cooperation?
2. What guidance should the Bureau provide to better define when a [competitor-competitor] agreement is likely to be subject to criminal prosecution?
3. Are severe potential criminal sanctions for competitor agreements warranted?
The National Centre for Business Law will be hosting its 5th NCBL Annual General Meeting and Reception with guest speaker Melanie Aitken, Commissioner of Competition on November 30, 2011 at the Four Seasons Hotel, Seasons Room, 791 West Georgia Street in Vancouver from 5:30 – 7:30 p.m.
For more information and registration details see:
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Templates/precedents and checklists to run promotional contests in Canada
Templates/precedents and checklists to comply with Canadian anti-spam law (CASL)
