What antitrust scrutiny can U.S. private equity expect in Canada?
Numerous recent proceedings by the U.S. Federal Trade Commission and Department of Justice have made antitrust issues top of mind for U.S. private equity (PE).
Given the frequent investment by U.S. sponsors into Canada, it is prudent to query whether a similar increase in regulatory scrutiny of PE is occurring north of the border.
The short answer is yes, and several examples are illustrative.
Writing in the ABA’s M&A Deal Points (PDF, 2,879 KB), we review these precedents for the benefit of U.S. PE considering a Canadian acquisition or minority investment.
We also consider certain differences between U.S. and Canadian antitrust law, as well as the practical impacts greater regulatory oversight of PE by Canadian competition authorities is having on risk mitigation and deal dynamics.