In this article, Lisa Stockley examines one of Canada’s most closely watched merger cases in recent years: the Competition Bureau’s challenge to Parrish & Heimbecker’s acquisition of a single grain elevator in Virden, Manitoba. Despite the seemingly narrow scope of the transaction, the case raised foundational questions about market definition, the role of economic evidence, and the interpretation of “substantial lessening of competition” under section 92 of the Competition Act.
Drawing on her experience supporting testifying expert Margaret Sanderson, Stockley unpacks the Tribunal’s decision, which ultimately rejected the Commissioner’s novel “grain handling services” product market theory. The article explores the Tribunal’s critique of the Commissioner’s economic model, its reaffirmation of the importance of commercial reality in merger review, and its obiter comments on the efficiencies defence under section 96.
This case sets important precedent for future merger enforcement in Canada, particularly around the evidentiary thresholds for substantiality and the limits of theoretical market constructs. It also arrives at a time of significant proposed reforms to Canadian competition law, making its lessons especially timely for practitioners, regulators, and scholars alike.
Lisa and the Margaret have presented on this case to competition law groups at several leading law firms and are available for further speaking engagements on the case’s implications for merger review, economic evidence, and enforcement strategy.
