GATINEAU, QC, Dec. 1, 2021 /CNW/ - To protect competition for customers of industrial waste services (IWS) and oil recycling services (ORS) in Western Canada, the Competition Bureau is challenging GFL Environmental Inc.'s recent purchase of Terrapure Environmental Inc.
Prior to the transaction, Terrapure was GFL's closest competitor in many IWS and ORS markets in Western Canada. A Bureau review found that the elimination of this rivalry is likely to result in increased prices and reduced service quality for customers.
The Bureau concluded that the transaction has likely substantially lessened competition in the collection and processing of industrial waste on Vancouver Island, in the British Columbia Interior and in Central Alberta.
The Bureau also determined that the transaction is likely to cause a substantial lessening of competition in the provision of ORS in eight regions across British Columbia, Alberta and Saskatchewan.
As such, on November 30, 2021, the Bureau filed an application with the Competition Tribunal for a court order requiring GFL to sell any assets necessary to remedy the likely substantial lessening of competition resulting from the acquisition.
The complete agreement will be available on the website of the Competition Tribunal shortly.
"Western Canadian customers who need industrial waste and oil recycling services deserve the benefits of healthy competition. We're taking this action to protect those customers from paying higher prices and experiencing reduced service."
Commissioner of Competition
On March 15, 2021, GFL announced it had entered into a definitive agreement to acquire the solid waste and environmental solutions business of Terrapure and its subsidiaries for approximately $927 million. GFL completed the acquisition on August 17, 2021.
IWS involve the collection and processing of waste generated by Canada's industrial and manufacturing sectors.
ORS involve the processing of used lubricating oil and related materials collected from various sources, such as vehicle oil change and repair shops, for subsequent sale as industrial fuel oil.
The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.
SOURCE Competition Bureau
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