The threshold for pre-closing merger notification under the Competition Act has been increased for 2015.

Canada uses a two-part test to determine whether pre-merger notification is necessary. This test is based on the size of the parties and the size of the transaction. The transaction size component can be adjusted annually for inflation. Under the size of the parties test, the parties, together with their affiliates, must have aggregate assets in Canada or annual gross revenues from sales in, from or into Canada in excess of C$400 million. Under the size of transaction test, the value of the assets in Canada or the annual gross revenue from sales (generated from those assets) in or from Canada of the target operating business and, if applicable, its subsidiaries must be greater than C$86 million. The 2014 transaction size threshold was C$82 million.

The changes became effective on publication in the Canada Gazette, Part I on February 7 2015.

For further information on this topic please contact Kevin Ackhurst at Norton Rose Canada LLP by telephone (+1 416 216 4000), fax (+1 416 216 3930) or email (kevin.ackhurst@nortonrose.com). The Norton Rose Fulbright Canada website can be accessed at www.nortonrosefulbright.com/ca.

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