Competition Tribunal Releases its Decision in the CCS Merger Case

On June 15, the Competition Tribunal (Tribunal) released its decision in Commissioner of Competition v. CCS Corporation. The Tribunal ordered CCS Corporation (CCS) to divest the shares or assets of Babkirk Land Services Inc. (Babkirk), concluding that the merger was likely to prevent competition substantially in the market for the supply of secure landfill services for solid hazardous waste from oil and gas producers in northeastern British Columbia. It also found that the merger would have prevented a decrease in average prices for hazardous waste disposal (referred to as "tipping fees") of at least 10%, although not for almost three years.

The Tribunal’s decision addresses several important issues in merger cases, including the applicable test for a substantial prevention of competition, the assessment of the efficiencies defence and the determination of an appropriate remedy where a transaction (or proposed transaction) results in a substantial lessening or prevention of competition.

Please read our fuller analysis of this case on McCarthy Tétrault’s website at http://www.mccarthy.ca/article_detail.aspx?id=5976.

Babkirk Land Services CCS Corporation competition Competition Tribunal merger

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