OTTAWA, December 13, 2005 — The Competition Bureau has resolved competition concerns arising from Quebecor Media Inc.'s acquisition of publishing and distribution group Sogides ltée. The resolution will preserve competition in Quebec's book industry.
In the course of reviewing the transaction, the Bureau learned that Sogides' president, Pierre Lespérance, had an interest in Gestion Renaud-Bray Inc., which competes with Quebecor's Archambault Group Inc. bookstores.
Quebecor and Sogides have signed a Consent Agreement with the Competition Bureau to eliminate the possibility of information exchanges between Archambault and Renaud-Bray through Mr. Lespérance. The agreement includes a requirement that Mr. Lespérance resign from Renaud-Bray's board of directors.
Over the course of its review, the Bureau analysed the merger's impact on competition in the Quebec publishing and distribution industry, consulting publishers, distributors, bookstores, government officials and industry associations.
Aside from the concerns over Mr. Lespérance's interest in Renaud-Bray, the Bureau concluded that the merger would not likely result in a substantial lessening or prevention of competition in the publishing and distribution of French language books. The Bureau found that, among other factors, existing competition will remain significant following the transaction and barriers to entry are not high enough to support a challenge before the Competition Tribunal.
The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality services. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act.
For media enquiries, please contact:
Eric Glaude
Communications Advisor
Communications Branch
(819) 953-9760
For general enquiries, please contact:
Information Centre
Competition Bureau
(819) 997-4282
1-800-348-5358
