OTTAWA, Sept. 4, 2015 /CNW/ - The Competition Bureau has issued a No Action Letter with respect to the proposed acquisition of the retail division of Groupe Archambault by an affiliate of Renaud-Bray.
The Bureau concluded that this transaction is unlikely to result in a substantial lessening or prevention of competition in light of, among other things, evidence suggesting that the price of books would not likely be materially higher following the transaction. In reaching its conclusion, the Bureau also took into account competitive dynamics specific to the Quebec book industry, which have resulted in an industry characterized by the presence of numerous remaining small independent bookstores.
A No Action Letter confirms that the Bureau has reviewed a proposed transaction and concluded that it will not, at this time, challenge the proposed transaction before the Competition Tribunal under the merger provisions of the Competition Act.
A position statement describing the Bureau's analysis of this proposed transaction and summarizing its main findings will be published shortly. In an effort to further enhance its communication and transparency with stakeholders, the Bureau will, where possible, publicly communicate the results of certain investigations, inquiries and merger reviews by way of a position statement.
- As part of the Bureau's normal approach in examining a merger, the Bureau consults with a wide range of industry participants, such as suppliers, competitors, industry associations, customers and industry experts, and considers many different factors, including the definition of the relevant market, the level of concentration, and the level of competition remaining in the market.
- On May 19, 2015, Québecor announced that it had agreed to sell the Groupe Archambault retail business to an affiliate of Renaud‑Bray, including 14 Archambault retail stores, the archambault.ca web portal, and Paragraphe, an English‑language bookstore.
- Founded in 1965, Renaud-Bray has close to 30 outlets across Quebec, an online boutique and a Web warehouse.
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
For further information: For media enquiries, please contact: Media Relations, Telephone: 819-994-5945, Email: [email protected]; For general enquiries, please contact: Information Centre, Competition Bureau, Telephone: 819-997-4282, Toll free: 1-800-348-5358, TTY (hearing impaired): 1-800-642-3844