Competition Law and Foreign Investment

Significant legal and strategic considerations which arise particularly in the context of large mergers and acquisitions include compliance with competition, antitrust and foreign investment rules in Canada.

Under the Competition Act, pre-merger notification of various types of transactions is required to be made to the Competition Bureau depending on the size of the parties and the size of the transaction. Even transactions which do not require pre-merger notification may nevertheless raise competition law concerns due to the increase in market power resulting from the transaction.

Under the Investment Canada Act, a non-Canadian commencing a new business activity in Canada or acquiring control of an existing Canadian business is required to notify or seek the approval of Canadian governmental authorities, and in particular instances, satisfy the “net benefit” to Canada test or concerns over transactions involving cultural businesses or national security.

We regularly represent buyers, sellers and other interested parties involved in domestic as well as cross-border and international transactions in relation to obtaining these regulatory approvals. Canadian and international companies and foreign law firms retain us to assist specifically with: