Last week we discussed the new merger review guidelines released by the Competition Bureau of Canada. On Tuesday, February 7, 2012 the Bureau announced additional changes to one of the key thresholds that trigger pre-merger notification and the review process discussed in our earlier post.
In Canada, parties are required to notify the Commissioner of Competition where a contemplated transaction triggers two thresholds: the “size of transaction threshold” and the “size of parties threshold”.
Where a transaction involves the combination of multiple entities, the “size of transaction threshold” is measured based on the aggregation of either the value of … Continue Reading
Earlier this month, the Competition Bureau published new Guidelines for its review process under the federal Competition Act. These Guidelines describe the Bureau’s general approach to administering its review process.
In general, where a proposed transaction surpasses the “party-size” and “transaction-size” thresholds parties are required to notify the Commissioner prior to completing the proposed transaction. Following notification, there is a two-stage review process.
First, there is an initial thirty day waiting period during which the Bureau will assess whether the proposed transaction threatens a “substantial lessening or prevention of competition”. In those relatively few instances where this test is … Continue Reading
In recent weeks, Industry Canada has announced important developments that affect the regulatory review process for Canadian mergers and acquisitions. Below, we give a brief introduction to the foreign direct investment review process and highlight some of these important changes.
Under the Investment Canada Act, Industry Canada is empowered to receive notice and often conduct a regulatory review whenever a non-Canadian makes an investment to establish a new Canadian business or to acquire control of an existing Canadian business. In this context a “non-Canadian” is defined to include foreign entities, as well as an entity incorporated in Canada that … Continue Reading