Note that the Commissioner can issue a NAL or waiver exempting the parties from further compliance with the waiting periods at any time during the process, effectively providing clearance for the proposed transaction.
These service standard periods are (i) 14 days for non-complex mergers (transactions that clearly have no competition issues because there is minimal or no competitive overlap between the merging parties) and (ii) 45 days for complex mergers (transactions between competitors, or a customer and supplier, where there are indications that the transaction may create, maintain or enhance market power). The service standard periods start to run once the Bureau determines that it has all the information necessary from the parties to commence its analysis. The periods can be suspended and restarted if the Bureau considers that a party is not responding to Bureau questions in a timely manner. The service standard periods are not binding, and actual timing of the Bureau’s review of a proposed transaction can also be influenced by many factors, including other mandatory regulatory review processes (e.g., reviews under the Investment Canada Act for certain investments in Canada by non-Canadians; see Davies’ ICA Guide for more details) or reviews of the same transaction in foreign jurisdictions.
Unsolicited Takeover Bids Where only a bidding party (and not the target company) files a notification, the Commissioner is required to notify the target company immediately, and the target is then required to file its portion of the notification within 10 days. The timing of the target’s filing of either an initial notification or responses to a SIR does not affect the running of either the initial waiting period or the waiting period following the bidding party’s response to a SIR.
Service Standards for ARCs and NALs The Bureau has established a non-binding
classification system for proposed mergers and associated “service standard” timelines within which it aims to complete its competitive assessment of the merger. (These service standards are distinct from and do not affect the above-noted statutory waiting periods.)
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Pre-Merger Notification Guide
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