OTTAWA, March 31, 2016 /CNW Telbec/ - To address competition concerns in respect of the supply of records management services in Canada, the Competition Bureau has reached a consent agreement with Iron Mountain Incorporated relating to its proposed acquisition of Recall Holdings.
Following its review of the proposed transaction, the Bureau concluded Iron Mountain's acquisition of Recall would likely have resulted in a loss of competition in the supply of records management services and higher prices for businesses.
To resolve these concerns, Iron Mountain entered into a consent agreement with the Commissioner which requires it to sell a number of records management facilities and customer contracts in six major Canadian cities.
In conducting its review, the Bureau cooperated with a number of its international counterparts, including the United States Department of Justice, the Australian Competition and Consumer Commission, and the United Kingdom's Competition and Markets Authority.
- Customers, such as governments, banks and medical institutions rely on records management companies to store their key business documents.
- Iron Mountain and Recall are the two largest suppliers of records management services in Canada.
- Under the terms of the agreement, Iron Mountain is required to sell records management assets, including facilities and customer contracts, in all six cities where the parties overlap — namely, Toronto, Montreal, Ottawa, Calgary, Edmonton and Vancouver.
- The proposed acquisition was not notifiable under the mandatory notification provisions of the Competition Act; however, under the Act, the Bureau has a mandate to review all mergers to determine whether they are likely to result in a substantial lessening or prevention of competition.
"Canadian businesses and government entities require secure, reliable and cost-effective storage for key business records and personal information. I am confident that this agreement will address the harm to competition arising from the merger of Iron Mountain and Recall."
Commissioner of Competition
The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.
SOURCE Competition Bureau
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