2007-04-11

Competition Bureau Appeals Decision in Labatt-Lakeport Merger

PRESS RELEASE From Industry Canada
OTTAWA, April 11, 2007 — The Competition Bureau announced that it has filed a notice with the Federal Court appealing the Competition Tribunal's refusal to grant an Interim Order preventing Labatt Brewing Company Ltd. from completing its acquisition of Lakeport Brewing Income Fund for 30 days.

"We believe that there is an important issue at stake in terms of the Bureau's ability to conduct appropriate reviews, while ensuring that sufficient remedies remain available if the Tribunal ultimately determines that the merger is likely to substantially lessen or prevent competition," said Melanie Aitken, Acting Senior Deputy Commissioner of Competition. "We are working to ensure that Canadian consumers benefit from lower prices and consumer choice"

The Commissioner of Competition filed an application for an order under section 100 of the Competition Act, on March 22, 2007, to forbid the parties from closing the merger for 30 days while the Bureau continued its review. On March 28, the Tribunal denied the Bureau's request for an extension, rejecting the argument that its ability to remedy potential competition issues will be substantially impaired because it would be difficult to reverse the merger.

The Bureau continues to work diligently to complete its review of the Labatt-Lakeport merger. If the Commissioner ultimately determines that there is a likely substantial lessening or prevention of competition, she can challenge the merger before the Tribunal.

The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality services. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.

For media enquiries, please contact:

Pamela Wong
Communications Advisor
External Relations and Public Affairs Branch
819-953-7734

For general enquiries, please contact:

Information Centre
Competition Bureau
819-997-4282
1-800-348-5358