Brief

Summary:

The Federal Court of Appeal has upheld the Competition Bureau's challenge of the merger between Secure Energy Services and Tervita Corporation, a merger that was deemed to have led to a substantial lessening of competition in 136 local markets in Western Canada's oilfield waste services. The Competition Tribunal had ordered Secure to sell 29 facilities to resolve the issue, and the Federal Court of Appeal dismissed Secure's appeal with costs. This outcome is expected to protect competition and benefit producers in the Western Canadian Sedimentary Basin.

Federal Court of Appeal upholds Competition Bureau’s successful challenge of Secure and Tervita merger

August 2, 2023 – GATINEAU, QC – Competition Bureau

August 2, 2023 – GATINEAU, QC – Competition Bureau

The Federal Court of Appeal has dismissed a petition by Secure Energy Services,  upholding the Competition Bureau’s successful challenge of the merger of two rival suppliers of oilfield waste services.

Secure’s appeal looked to overturn a recent decision by the Competition Tribunal that ordered the company to sell 29 facilities to resolve ongoing harm to competition in Western Canada.

The Tribunal concluded that there was a substantial lessening of competition in 136 local markets in the Western Canadian Sedimentary Basin (WCSB) as a result of Secure’s merger with Tervita Corporation. The Tribunal also determined that Secure did not meet the requirements of the efficiencies defence which it invoked. Secure’s appeal focused on the Tribunal’s conclusions regarding the efficiencies defence.

In its decision, the Federal Court of Appeal found no merit in any of the issues raised by Secure in its appeal. The appeal was dismissed with costs to be awarded to the Bureau.

Upholding the Tribunal’s decision protects competition for oil and gas waste services used by producers in the WCSB.

“I am pleased that this matter was heard and resolved quickly. Competitive pricing and quality service need to be brought back to affected customers in the oilfields in the Western Canadian Sedimentary Basin.”

Matthew Boswell,
Commissioner of Competition

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

Highlights content goes here...

Summary

On August 2, 2023, the Federal Court of Appeal upheld the Competition Bureau’s decision to challenge the merger between Secure Energy Services and Tervita Corporation, a leading supplier of oilfield waste services in Western Canada. The Competition Tribunal had previously ordered Secure to divest 29 facilities to restore competition in 136 local markets in the Western Canadian Sedimentary Basin (WCSB).

The merger was deemed to have resulted in a substantial lessening of competition, causing harm to oil and gas producers in the WCSB. The Tribunal concluded that Secure failed to meet the requirements of the efficiencies defence, which was invoked by the company to justify the merger. Secure’s subsequent appeal focused on the Tribunal’s findings regarding the efficiencies defence.

The Federal Court of Appeal dismissed Secure’s appeal, finding no merit in the company’s arguments. This decision protects competition in the oilfield waste services market, ensuring that producers in the WCSB can continue to benefit from competitive pricing and quality service.

The Competition Bureau, as an independent law enforcement agency, played a crucial role in ensuring that Canadian consumers and businesses prosper in a competitive and innovative marketplace. Commission of Competition Matthew Boswell expressed satisfaction with the quick resolution of the matter, emphasizing the importance of fostering competition in the WCSB.

Key Findings:

The Federal Court of Appeal upheld the Competition Tribunal’s decision to block the Secure-Tervita merger.
The merger was found to have resulted in a substantial lessening of competition in 136 local markets in the WCSB.
Secure failed to meet the requirements of the efficiencies defence, which was invoked to justify the merger.
The Competition Bureau acted to protect competition in the oilfield waste services market, ensuring that producers in the WCSB can benefit from competitive pricing and quality service.

References:

Competition Bureau Press Release, August 2, 2023
Federal Court of Appeal Decision, August 2, 2023

Competition Bureau

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