Blakes Competitive Edge': December 2021 Update

• Published date: 28 December 2021
• Subject Matter: orporate/Commercial Law, Anti-trust/Competition Law, Government, Public Sector, M&A/Private Equity, Inward/ Foreign Investment, Antitrust, EU Competition
• Law Firm: Blake, Cassels & Graydon LLP
• Author: Blakes Competition & Antitrust Group and Blakes Foreign Investment Group

Welcome to the December issue of Blakes Competitive Edge, a monthly publication of the Blakes Competition, Antitrust & Foreign Investment group. Blakes Competitive Edge provides an overview of recent developments in Canadian competition law, including updates on enforcement activity by the Canadian Competition Bureau (Bureau), recent initiatives and key trends.

Key Highlights

• Merger review activity remained strong through the month of November with 203 merger reviews having been completed year-to-date. This is a five per cent increase over the number of reviews completed through the same period in 2019 (193), and a 45 per cent increase over the number of reviews through the same period in 2020 (140).
• The Competition Bureau entered into a consent agreement with Paper Excellence relating to the company's proposed transaction to acquire the issued and outstanding shares of Domtar Corporation.
• The federal government issued a mandate letter to the Minister of Innovation, Science and Industry addressing, among other things the Minister's approach to competition policy and foreign investment.
• China Mobile lost its motion to stay the Order in Council requiring it to either divest

Merger Monitor

November 2021 Highlights

• 22 merger reviews completed
• Primary industries: real estate and rental and leasing (41 per cent); manufacturing (23 per cent); and finance and insurance (14 per cent)
• One consent agreement (remedies) filed
• 12 transactions received an Advance Ruling Certificate (55 per cent), while nine transactions received a No Action Letter (41 per cent)

January - November 2021 Highlights

• 203 merger reviews completed
• Primary industries: real estate and rental and leasing (21 per cent); manufacturing (21 per cent); and mining, quarrying and oil and gas extraction (14 per cent)
• Three consent agreements (remedies) filed
• 132 transactions received an Advance Ruling Certificate (65 per cent), while 68 transactions received a No Action Letter (33 per cent)

Merger Enforcement

Competition Bureau enters into consent agreement with Karta Halten B.V.

• On November 18, 2021, the Competition Bureau entered into a consent agreement with Karta Halten B.V. (Paper Excellence) and its affiliates, relating to the company's proposed acquisition of Domtar Corporation. Following its review of the proposed transaction, the Bureau concluded that the transaction was likely to result in a substantial lessening of competition in the purchase of wood fibre from the Thompson/Okanagan region of British Columbia (B.C.) where Paper Excellence currently owns a high concentration of pulp mills. To resolve these concerns, Paper Excellence has agreed to sell Domtar's pulp mill in Kamloops B.C., to an independent purchaser.

Competition...