Competition Bureau approves Waste Connections as buyer of 29 Secure facilities to resolve competition concerns
News release
February 5, 2024 – GATINEAU, QC – Competition Bureau
The Competition Bureau has approved R360 Environmental Solutions Canada Inc., an affiliate of Waste Connections, Inc., as the buyer of 29 facilities owned by Secure Energy Services, which supplies oilfield waste services.
In March 2023, the Competition Tribunal issued an order requiring the sale of Secure facilities to an independent purchaser approved by the Bureau.
The Tribunal ordered Secure to sell these facilities to resolve competition concerns in the oilfield waste industry resulting from Secure’s July 2021 merger with Tervita Corporation. The facilities include 17 treatment, recovery, and disposal facilities, 4 standalone water disposal wells, 6 landfills and 2 caverns. Secure acquired these facilities as part of the merger.
The Bureau challenged the proposed merger in June 2021. The Bureau’s merger review found that the loss of rivalry between Secure and Tervita would result in oil and gas producers likely paying higher prices and experiencing a reduced quality of service.
In March 2023, the Competition Tribunal ruled in favour of the Bureau’s challenge. It determined that the merger had caused a substantial lessening of competition in 136 local markets in the Western Canadian Sedimentary Basin. The Tribunal also determined that Secure did not meet the requirements of the efficiencies defence which it invoked.
The Bureau is satisfied that the sale will reintroduce competition for oilfield waste services in the WCSB.
Quotes
“With this sale, businesses that rely on oilfield waste services can once again benefit from a competitive market.”
Matthew Boswell,
Commissioner of Competition
Quick facts
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Waste Connections, Inc. is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services to residential, commercial and industrial customers in Canada and the United States.
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The WCSB, which spans southwestern Manitoba, southern Saskatchewan, Alberta, northeastern British Columbia and the southwest corner of the Northwest Territories, contains one of the world’s largest reserves of petroleum and natural gas.
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Pre-merger, Secure and Tervita were the two largest suppliers, and in many areas, the only suppliers of oil and gas waste services in the WCSB and vigorously competed with one another to win customers.
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In August 2023, the Federal Court of Appeal dismissed a petition by Secure.
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Secure sought leave to appeal to the Supreme Court of Canada, and that application has not been decided.
Related products
Associated links
- Federal Court of Appeal upholds Competition Bureau’s successful challenge of Secure and Tervita merger
- Competition Bureau successful in challenge of Secure and Tervita merger
- Federal Court of Appeal confirms that the Competition Tribunal has the power to temporarily block mergers
- Competition Bureau obtains court orders related to its challenge of Secure’s acquisition of Tervita
- Competition Bureau challenges proposed merger of rival oil and gas waste service providers Secure and Tervita
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