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Canada Transportation Act (S.C. 1996, c. 10)

Act current to 2019-06-20 and last amended on 2019-04-03. Previous Versions

PART IAdministration (continued)

Review of Mergers and Acquisitions

Marginal note:Notice

  •  (1) Every person who is required to notify the Commissioner of Competition under subsection 114(1) of the Competition Act of a proposed transaction that involves a transportation undertaking shall, at the same time as the Commissioner is notified and, in any event, not later than the date by which the person is required to notify the Commissioner,

    • (a) give notice of the proposed transaction to the Minister; and

    • (b) in the case of a proposed transaction that involves an air transportation undertaking, also give notice of the transaction to the Agency.

  • Marginal note:Information

    (2) A notice given to the Minister or to the Agency shall, subject to the regulations, contain the information required under subsection 114(1) of the Competition Act. The notice shall also contain any information with respect to the public interest as it relates to national transportation that is required under any guidelines that shall be issued and published by the Minister. After receipt of a notice, the Minister may require the person who has given the notice to provide further information.

  • Marginal note:Guidelines

    (2.1) The guidelines referred to in subsection (2) shall be elaborated in consultation with the Competition Bureau and shall include factors that may be considered to determine whether a proposed transaction raises issues with respect to the public interest as it relates to national transportation.

  • Marginal note:Not statutory instruments

    (3) The guidelines referred to in subsection (2) are not statutory instruments within the meaning of the Statutory Instruments Act.

  • Marginal note:No public interest issues

    (4) If the Minister is of the opinion that the proposed transaction does not raise issues with respect to the public interest as it relates to national transportation, the Minister shall, within 42 days after a person gives notice under subsection (1), give notice of the opinion to that person, in which case sections 53.2 and 53.3 do not apply in respect of that transaction.

  • Marginal note:Public interest issues

    (5) If the Minister is of the opinion that the proposed transaction raises issues with respect to the public interest as it relates to national transportation, the Minister may direct the Agency to examine those issues under section 49 or appoint and direct any person to examine those issues under section 7.1 of the Department of Transport Act.

  • Marginal note:Report

    (6) The Agency or person, as the case may be, shall report to the Minister within 150 days after being directed under subsection (5), or within any longer period that the Minister may allow.

  • 2007, c. 19, s. 13

Marginal note:Prohibition

  •  (1) No person shall complete a proposed transaction referred to in subsection 53.1(1) unless the transaction is approved by the Governor in Council and, in the case of a transaction that involves an air transportation undertaking, the Agency determines that the transaction would result in an undertaking that is Canadian as defined in subsection 55(1).

  • Marginal note:Commissioner’s report

    (2) The Commissioner of Competition shall within 150 days after the Commissioner is notified of the proposed transaction under subsection 114(1) of the Competition Act, or within any longer period that the Minister may allow, report to the Minister and the parties to the transaction on any concerns regarding potential prevention or lessening of competition that may occur as a result of the transaction.

  • Marginal note:Report to be made public

    (3) The report shall be made public immediately after its receipt by the Minister.

  • Marginal note:Concerns relating to public interest and competition

    (4) After receipt of the Commissioner’s report and any report given under subsection 53.1(6), but before the Minister makes a recommendation for the purposes of subsection (7), the Minister shall

    • (a) consult with the Commissioner regarding any overlap between any concerns that the Minister has in respect of the proposed transaction with regard to the public interest as it relates to national transportation and any concerns in respect of the transaction that are raised in the Commissioner’s report; and

    • (b) request the parties to the transaction to address

      • (i) with the Minister any concerns that the Minister has in respect of the transaction with regard to the public interest as it relates to national transportation, and

      • (ii) with the Commissioner any concerns that the Commissioner has regarding potential prevention or lessening of competition that may occur as a result of the transaction.

  • Marginal note:Measures to address concerns

    (5) The parties to the transaction shall

    • (a) after conferring with the Minister regarding concerns referred to in subparagraph (4)(b)(i), inform the Minister of any measures they are prepared to undertake to address those concerns; and

    • (b) after conferring with the Commissioner regarding concerns identified under subparagraph (4)(b)(ii), inform the Commissioner of any measures they are prepared to undertake to address those concerns.

    The parties may propose revisions to the transaction.

  • Marginal note:Preconditions to recommendation

    (6) Before making a recommendation for the purposes of subsection (7), the Minister shall obtain the Commissioner’s assessment of the adequacy of any undertaking proposed by the parties to address the concerns that have been identified under subparagraph (4)(b)(ii) and the effects of any proposed revisions to the transaction on those concerns.

  • Marginal note:Approval of Governor in Council

    (7) If the Governor in Council is satisfied that it is in the public interest to approve the proposed transaction, taking into account any revisions to it proposed by the parties and any measures they are prepared to undertake, the Governor in Council may, on the recommendation of the Minister, approve the transaction and specify any terms and conditions that the Governor in Council considers appropriate. The Governor in Council shall indicate those terms and conditions that relate to potential prevention or lessening of competition and those that relate to the public interest as it relates to national transportation.

  • Marginal note:Variation of terms and conditions

    (8) On application by a person who is subject to terms and conditions specified under subsection (7), the Governor in Council may, on the recommendation of the Minister, vary or rescind the terms and conditions. If the terms and conditions to be varied or rescinded affect competition, the Minister shall consult with the Commissioner before making the recommendation.

  • Marginal note:Commissioner’s representations

    (9) If the Minister directs the Agency under section 49 to inquire into any matter or thing to assist the Minister in making a recommendation under subsection (7) or (8), the Agency shall give notice of the inquiry to the Commissioner and allow the Commissioner to make representations to the Agency.

  • Marginal note:Compliance with terms and conditions

    (10) Every person who is subject to terms and conditions shall comply with them.

  • 2007, c. 19, s. 13

Marginal note:Canadian

 The Agency shall determine whether a proposed transaction referred to in subsection 53.1(1) that involves an air transportation undertaking would result in an undertaking that is Canadian as defined in subsection 55(1).

  • 2007, c. 19, s. 13

Marginal note:Order of divestiture — application by Minister

  •  (1) If a person contravenes subsection 53.2(1) or (10) with respect to a term or condition that relates to the public interest as it relates to national transportation, a superior court may, on application by the Minister, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Minister shall notify the Commissioner of Competition before making an application.

  • Marginal note:Order of divestiture — application by Commissioner

    (2) If a person contravenes subsection 53.2(10) with respect to a term or condition that relates to potential prevention or lessening of competition, a superior court may, on application by the Commissioner, order the person to cease the contravention or do any thing that is required to be done, and may make any other order that it considers appropriate, including an order requiring the divestiture of assets. The Commissioner shall notify the Minister before making an application.

  • 2007, c. 19, s. 13

Marginal note:Regulations

 The Governor in Council may, on the recommendation of the Minister, make regulations

  • (a) specifying information required in a notice under subsection 53.1(1); and

  • (b) exempting classes of transactions from the application of sections 53.1 to 53.3.

  • 2007, c. 19, s. 13
 
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