Application of Canadian Competition Law to Private Equity Bidding Consortiums
|Area||Competition, Antitrust and Foreign Investment, Private Equity|
Recent media reports suggest that the Antitrust Division of the United States Department of Justice is investigating the potential application of the antitrust laws to circumstances where private equity firms have agreed to join forces in bidding for corporations. With these reports, the inevitable antitrust class action suit in the U.S. was launched seeking damages for allegedly driving down the price received by shareholders in these transactions by reducing the number of independent bidders. This update examines the possible application of Canadian competition law to this issue.