Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Movie theater acquisitions approved by Canada competition authority, (Oct 11, 2013)
Organizations Mentioned:Cineplex, Inc. | Empire Theatres Ltd.
By Jeffrey May, J.D.
Canada’s largest theater operator, Cineplex, Inc., has received clearance from the Canada Competition Bureau to proceed with its proposed acquisition of 24 movie theatres from Empire Theatres Ltd. Two theaters located in Ontario were dropped from the original deal to satisfy competition concerns identified by the country’s antitrust authority.
The Competition Bureau announced yesterday that it had issued a No Action Letter (NAL) to Cineplex with respect to the proposed transaction. A NAL confirms that the Competition Bureau has reviewed a specific proposed merger and concluded that it will not, at this time, challenge that proposed transaction before the Competition Tribunal under the merger provisions of the Competition Act, it was explained. The 24 theaters are located in Atlantic Canada, where Cineplex currently does not operate.
According to the Competition Bureau, Cineplex announced plans in June to acquire Empire’s 24 movie theaters in Atlantic Canada, as well as Empire’s two theatres in Whitby and Kanata, Ontario. The agency conducted a three-month review and determined that the proposed acquisition of the theaters in Whitby and Kanata would likely lead to a substantial lessening of competition in those markets. As a result, the parties revised their transaction to exclude those two Ontario theatres.
Landmark Cinemas of Canada will acquire these two excluded locations, in addition to 20 of Empire’s movie theatres in Western Canada and Ontario, in markets where Landmark does not currently have a significant presence, according to the Competition Bureau.
Cineplex statement. “Today’s announcement brings us an important step closer to our goal of establishing a truly national, coast-to-coast presence for Cineplex,” said Ellis Jacob, President and Chief Executive Officer, Cineplex Entertainment, in an October 10 statement. “We look forward to providing our Atlantic Canadian guests an exceptional entertainment experience.”
Cineplex is based in Toronto. Empire’s corporate headquarters are located in New Glasgow, Nova Scotia.
Companies: Cineplex, Inc.; Empire Theatres Ltd.
News: Antitrust