The Litigator

THE LITIGATOR

Commentary on Law Affecting Business

The Litigator
AGM :: Affleck Greene McMurtry LLP

THE LITIGATOR

Affleck Greene McMurtry LLP
365 Bay Street, Suite 200  ·  Toronto, Canada
416 360 2800  ·  info@agmlawyers.com  ·  www.thelitigator.ca

Bureau Moves Iron Mountain in Recall Acquisition

Evening view of Ama Dablam on the way to Everest Base Camp - Nepal

Not quite king of the hill

Inc. agreed to divest assets and customer contracts in 6 of the 10 markets where its acquisition target, Holdings, operates. Iron Mountain will divest assets in Toronto, Montreal, Ottawa, Calgary, Edmonton and Vancouver, retaining Recall assets only in Kitchener, Winnipeg, Halifax and Victoria.

Although it was not a notifiable transaction under the Competition Act, the Bureau reviewed the proposed merger of Canada’s two largest records management companies under its general mandate to determine whether it would likely result in a substantial lessening or prevention of competition in the market for business records management.

This global $2.6 billion transaction was also reviewed by competition authorities around the world, including the US, the UK, and Australia.

In Canada, the Bureau was concerned with the fact that affected customers would primarily include governments, banks and medical institutions that rely on to safely store vital and highly confidential information.

The Bureau concluded that customer switching fees would be a barrier to entry or expansion by a new or existing competitor. or new entrant’s most significant barrier to expansion or entry is the payment of these customer switching fees. These fees would make it difficult for competitors to recoup infrastructure and equipment start‑up costs.

The Bureau thus concluded that Iron Mountain would be able to raise prices after acquiring Recall, a vigorous and effective competitor.

Daphne Hooper
Affleck Greene McMurtry LLP

Daphne Hooper

Daphne represents clients in a broad range of commercial matters and is a valued member of the firm’s competition law practice group. Her experience includes complex contractual disputes, multi-jurisdictional class actions, employment matters and professional negligence, including errors and omissions by brokers/dealers and lawyers.

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