OTTAWA, March 29, 2016 /CNW Telbec/ - The Competition Bureau and Parkland Ltd. have reached a consent agreement to resolve litigation related to Parkland's acquisition of Pioneer Energy. The agreement will ensure that consumers in certain Ontario and Manitoba markets benefit from competition at the pumps.

Parkland has agreed to sell gas stations or exclusive gasoline supply agreements in six markets in Ontario and Manitoba, and surrender its ability to increase any margin that it earns on the sale of gasoline in two markets in Manitoba where it is a wholesale supplier.

The consent agreement is the first of its kind to have been reached through a mediation process in a Competition Tribunal proceeding. The mediator was a judicial member of the Tribunal, the Honourable Paul Crampton, Chief Justice of the Federal Court. The agreement resolves the Commissioner of Competition's concerns that the deal would significantly lessen competition in eight local markets to the detriment of Canadian consumers of gas.

Quick Facts

• In May 2015, the Competition Tribunal issued the first contested injunction in a merger application, preventing Parkland from implementing the deal in six local markets in Ontario and Manitoba pending the outcome of litigation in this case.
• Parkland has entered into a registered consent agreement with the Bureau, the terms of which require Parkland to sell a station or exclusive supply agreement in each of the following markets:
  • Bancroft, Ontario;
  • Hanover, Ontario;
  • Kapuskasing, Ontario;
  • Innisfil, Ontario;
  • Tillsonburg, Ontario; and
  • Neepawa, Manitoba.
• The agreement also prevents Parkland from increasing any margin that it earns on the wholesale of gasoline to its dealers in Lundar and Warren, Manitoba.
• Over the years, the Bureau has taken action in the gasoline and other petroleum products industry, examples include conducting investigations that have led to prosecutions for price-fixing and a merger review that resulted in the sale of many gasoline stations, as well as interventions before regulatory boards.

Quotes

"Canadians expect competitive gas prices. I am pleased that the first mediation process in a Competition Tribunal proceeding resulted in a favourable outcome for Canadian consumers. We will continue to seek innovative ways to ensure Canadians benefit from a competitive marketplace."

John Pecman,
Commissioner of Competition

Associated Links

April 30, 2015: Competition Bureau challenges a merger between gas retailers Parkland and Pioneer
June 3, 2015: Tribunal issues interim order in the Parkland/Pioneer merger

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SOURCE Competition Bureau