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

Competition Bureau Issues Consent Agreement Template

The Competition Bureau has released a template for merger consent agreements, with the intention of providing more transparency and predictability to businesses engaged in the merger review process. The consent agreement template sets out the key provisions that the Bureau deems necessary to address the competitive issues before approving the transaction.

When the Bureau is concerned about the potential anti-competitive effects of a proposed merger, it can opt to negotiate a consent agreement instead of challenging the transaction in a contested proceeding. A consent agreement sets out a list of actions that parties to the merger will implement in order to remedy the anti-competitive effects of the transaction, which typically include a divestiture of assets. Once the consent agreement is registered with the Competition Bureau, the Commissioner of Competition will issue a No Action Letter, allowing the merger to proceed.

The template is only suitable for cases where divestiture is the primary remedy. For stand-alone behavioural or other remedies, it is best to refer to recent cases for sample language.

 

Wendy Sun
Affleck Greene McMurtry LLP

Wendy Sun

Wendy Sun is a former associate of Affleck Greene McMurtry LLP

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