Mar 26, 2014
Four permits for the operation of secure landfills for the disposal of hazardous waste generated by oil and gas operations had been issued in Northeastern British Columbia. Two of the permits are held by the Applicant Tervita who owned and operated two hazardous waste landfills in the area. One permit held by the Applicant Babkirk Land Services ('Babkirk'), a wholly owned subsidiary of the Applicant Complete Environmental ('Complete'). The fourth permit issued for a site developed by an aboriginal community, but the landfill not yet constructed. Tervita bought Complete, which included Babkirk. However, prior to closing, the Commissioner of Competition opposed the transaction on the ground that it was likely to prevent competition substantially in secure landfill services in Northeastern B.C. After closing, the Commissioner asked the Competition Tribunal to order pursuant to s. 92 of the Competition Act that the transaction be dissolved, or in the alternative, that Tervita divest itself of Complete or Babkirk. The Tribunal found that the merger likely prevented real and substantial competition in the marketplace. It also found that Tervita had not proved that the efficiencies gained by the merger were sufficient to outweigh and offset the merger's anti competitive harm. It ordered Tervita to divest itself of the shares or assets of Babkirk. The Federal C.A. upheld that decision.
Tervita Corporation, et al. v. Commissioner of Competition (Fed. C.A., Feb. 11, 2013) (35314)