Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Settlement addresses competition concerns over partnership in Quebec construction, renovation industry, (Nov 4, 2013)

The Canada Competition Bureau has announced that a consent agreement with La Coop federee (LCF) and Groupe BMR (BMR) has been reached to preserve competition in the retail sale of hardware products and building materials in the province of Quebec. LCF proposed to acquire a minority interest in BMR in a commercial partnership agreement and, through their association, the two companies would offer over 360 retail locations in the home renovation and hardware store industry to consumers and contractors.

The consent agreement will require certain store franchises in four local markets in Quebec to find new banners under which to operate. The parties are also required to continue to supply the stores on competitive terms until either a new franchisor is found or the end of 2014.

The consent agreement, filed on November 1, 2013, was reached following a review of the proposed transaction by the Competition Bureau which concluded that the acquisition would likely result in a substantial lessening or prevention of competition. The Competition Bureau designed the agreement “to ensure that consumers in these regions of Quebec will continue to have access to competitive prices and product choice.”

LCF is the largest agri-food cooperative in Quebec and has a network of five brands. BMR is a group of independent dealers that operate 180 home renovation centers and hardware stores in Quebec, Ontario, the Maritime Provinces and the Saint-Pierre et Miquelon Islands. The two companies view their association as a contribution to the development of businesses in Quebec and Canada and the increased purchasing power and economies of scale will benefit consumers.

Companies: La Coop federee; Groupe BMR

News: Antitrust