The following Competition guidance note Produced in partnership with Davies Ward Phillips & Vineberg LLP provides comprehensive and up to date legal information covering:
A conversation with Mark Katz, partner at Canadian law firm Davies Ward Phillips & Vineberg LLP, on key issues on merger control in Canada.
NOTE–to see whether notification thresholds in Canada and throughout the world are met, see Where to Notify.
Canada's Competition Act (the Act) authorises the Commissioner of Competition (the Commissioner) to challenge merger transactions that are likely to prevent or lessen competition substantially in a relevant market affecting Canada. The Commissioner heads the Competition Bureau (the Bureau) which is responsible for investigating merger transactions to determine if they are likely to have the proscribed anti-competitive effect.
The definition of ‘merger’ for these purposes is quite broad. In addition to acquisitions of control (defined as the acquisition of a greater than 50% interest in the target entity), a 'merger' includes any transaction by which one party acquires or establishes a 'significant interest' in the business of another. 'Significant interest' is interpreted as the ability to exercise 'material influence' over the target party's business, which can capture acquisitions of minority interests (even potentially as low as 10%), as well as contractual arrangements in which there is no transfer of interests at all.
The Act also establishes a pre-merger notification regime for certain types of merger transactions that exceed statutory thresholds
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