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Competition Bureau satisfied that proposed sale of St-Hubert will not limit consumer choice


May 19, 2016
By Competition Bureau

Topics

May 18, 2016 – The Competition Bureau has announced that it will not oppose the proposed acquisition of Montreal-based St-Hubert restaurants by food-service operator Cara Operations Limited of Vaughan, Ontario.

During its review of the proposed transaction, the Bureau determined that a substantial lessening or prevention of competition would be unlikely. Among other factors, the Bureau identified numerous other restaurants that compete for similar customers in each local market where the parties compete, therefore ensuring effective competition in each local market where there is overlap between the parties’ restaurant sites. Consequently, the Bureau issued a No Action Letter to Cara.

Under the Competition Act, the Bureau has a mandate to review mergers to determine whether they are likely to result in a substantial lessening or prevention of competition.  In reviewing mergers, the Bureau considers many different elements, including the level of economic concentration in the relevant industry and the merging parties’ market shares.

Quick Facts

  • Cara Operations Limited is proposing to acquire 2312-2484 Quebec Inc., which operates St-Hubert restaurants as well as two food manufacturing plants and two distribution centres in Quebec.
  • Cara Operations Limited owns several Canadian restaurant brands, including Swiss Chalet, Harvey’s, Montana’s, Milestones, East Side Mario’s, Kelsey’s, New York Fries, Prime Pubs, Bier Markt and Landing Group restaurants.
  • A No Action Letter (NAL) confirms that the Bureau has reviewed a specific proposed transaction and concluded that it will not, at this time, challenge the proposed transaction before the Competition Tribunal under the merger provisions of the Competition Act.

The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.