Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Canadian Court Upholds Order to Divest Hazardous Waste Landfill, (Feb 12, 2013)
Organizations Mentioned:Terravita Corp. | Tervita Corp.
By Tobias J. Gillett, J.D., LLM.
The Canadian Federal Court of Appeal has today upheld a May 29, 2012, decision of the Competition Tribunal requiring energy and environmental services company Tervita Corporation, formerly known as CCS Corporation, to divest its Babkirk Secure Landfill hazardous waste disposal site in British Columbia, the Canada Competition Bureau has announced.
On January 26, 2011, the Bureau filed an application with the Competition Tribunal challenging CCS’s acquisition of Complete Environmental Inc., which had owned the proposed landfill, under Section 92 of the Competition Act. CCS had previously owned the only two operational secure landfills in British Columbia, and the Babkirk landfill would function as its competition.
The Bureau had alleged that the merger would prevent competition in the market for the disposal of hazardous waste in Northern British Columbia, particularly from oil and gas facilities. Although the Competition Tribunal declined to order dissolution of the merger, it ordered CCS to divest the landfill and related assets.
The Federal Court of Appeal ruling rejects a June 2012 appeal to the Tribunal’s decision filed by Tervita, the name given to a March 2012 combination of business units including CCS. The court is expected to announce the reasons for its ruling next week.
"We are pleased that the Court has dismissed Tervita's appeal with costs and upheld the Tribunal's order," said Interim Commissioner of Competition, John Pecman. "If the acquisition had been allowed, Tervita would have been in a position to entrench its monopoly on secure hazardous waste disposal in Northeastern British Columbia."
The case represented the Bureau’s first challenge to a merger since 2005. The Bureau regards the decision as an “important precedent for future prevention of competition cases.”
"In light of this ruling from the FCA, we expect Tervita to act quickly to implement the Tribunal's order," said Senior Deputy Commissioner of Competition Kelley McKinnon. "The divestiture of the Babkirk hazardous waste landfill site will benefit consumers and businesses alike by promoting competitive pricing and services, instead of the inflated rates and diminished services that would have continued if the merger were allowed to stand."
Companies: Tervita Corp.
News: Antitrust