Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Canada Competition Bureau to review $316M acquisition of 175 newspapers, publications, (Oct 8, 2014)
Organizations Mentioned:Postmedia Network Canada Corp. | Quebecor Media Inc. | Quebecor Media, Inc. | Sun Media Corp.
By Greg Hammond, J.D.
Canada Commissioner of Competition John Pecman has announced that the Competition Bureau will review Postmedia Network Canada Corp.’s proposed acquisition of Quebecor Media Inc.’s English-language daily newspapers and media assets.
“While media ownership concentration can raise other public interest concerns, under the Competition Act, the Bureau’s mandate is to review mergers exclusively to determine whether they are likely to result in a substantial lessening or prevention of competition,” the Commissioner stated.
The proposed $316 million acquisition includes 175 English language newspapers, publications, and digital properties owned by Quebecor subsidiary Sun Media Corp., according to a Postmedia news release. Postmedia expects the acquisition to significantly enhance its cash flow profile and pro forma leverage; generate synergy potential, and increase the company’s owned real estate.
However, “[t]he transaction is subject to approval by the Competition Bureau,” noted Quebecor. “While it is under review, Sun media Corporation will continue managing the assets and publications in question.”
In its review of the proposed acquisition, the Competition Bureau is expected to consult a number of industry participants—including suppliers, competitors, industry associations, customers, and industry experts—in order to consider a range of factors, such as the definition of the relevant market, the level of concentration within the market, and the level of competition that would remain after the acquisition is completed.
Companies: Quebecor Media Inc.; Postmedia Network Canada Corp.
News: AcquisitionsMergers Antitrust