The Competition Tribunal ruled in favor of the Canadian Competition Bureau’s Commissioner of Competition in his challenge of Secure Energy’s acquisition of Tervita.
Retained by the Canadian Competition Bureau
The Canadian Competition Bureau retained Greg Eastman of Cornerstone Research and another economic expert to analyze a transaction between the two largest waste service providers in Canada, Secure Energy Services Inc. and Tervita Corporation. Dr. Eastman assessed the merging parties’ efficiency claims. The other economic expert assessed the competitive effects and deadweight loss resulting from this transaction.
The experts filed expert reports during the Section 104 Interim Order injunction phase and the Section 92 merger challenge phase. Both experts filed rebuttal testimony and appeared at the Competition Tribunal (Tribunal)’s hearing.
Dr. Eastman reviewed and criticized the parties’ efficiency claims. The Tribunal found that “gains in efficiency are much less than the total efficiency gains claimed by Secure.” The other expert submitted testimony explaining his analysis of the relevant product and geographic markets, competitive effects on prices for waste services, and deadweight loss stemming from planned facility closures and higher waste service prices.
On March 3, 2023, the Tribunal ruled in favor of the Commissioner of Competition in his challenge of Secure Energy’s acquisition of Tervita. The Tribunal ordered Secure to sell 29 facilities to resolve the substantial lessening of competition in 136 relevant markets.
Secure appealed the decision to the Federal Court of Appeal. On August 2, 2023, the Federal Court of Appeal dismissed Secure’s petition, upholding the Tribunal’s successful merger challenge.
Washington 
