Competition Bureau will not oppose merger between defence contractors Harris Corporation and L3 Technologies
June 21, 2019 – OTTAWA, ON – Competition Bureau
The Competition Bureau has concluded its review of the proposed merger between Harris Corporation (Harris) and L3 Technologies, Inc. (L3) and has issued a No Action Letter (NAL) to the companies. The NAL confirms that the Bureau will not challenge the proposed merger at this time. The terms of the NAL are subject to the implementation of a consent decree between the United States Department of Justice (U.S. DOJ) and the merging parties.
The Bureau concluded that the proposed transaction would lead to a likely substantial lessening of competition in certain markets related to the night vision operations of the merging parties. However, a remedy obtained by the U.S. DOJ would see Harris divest the entirety of its night vision business. This remedy resolves the Bureau’s competition concerns with this transaction.
During its review, the Bureau conducted consultations with a broad range of market participants and made use of a range of analytical tools. As Harris and L3 supply defence technology and services to Canadian and foreign markets, the Bureau carried out its review in cooperation with the U.S. DOJ and the European Commission. Each authority reviewed the effects of the transaction under its distinct legal framework.
When a merger is subject to regulatory approvals in other jurisdictions, the Bureau works closely with its international counterparts.
The Bureau's long-standing relationship with the U.S. DOJ ensured an efficient and coordinated review of this matter, consistent with the agencies' agreement on Best practices on cooperation in cross-border merger investigations.
The Competition Act allows for a one-year period following the completion of a transaction during which the Commissioner may bring an application to the Competition Tribunal challenging the transaction.
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