OTTAWA, May 12, 2006 -- The Competition Bureau announced today that the sale of Agricore United's AUV grain handling terminal in the Port of Vancouver will go to a Trustee. This follows Agricore United's decision to abandon its challenge to the 2002 Consent Agreement with the Bureau, which required it to sell either the UGG (now AUV) terminal or the Pacific Elevators Limited terminal. Grant Thornton LLP has been appointed as trustee and will have four months to sell the terminal.
Earlier this week, the Competition Tribunal dismissed Agricore United's motion to adjourn the hearing of its application. In addition, the Tribunal awarded costs to the Commissioner of Competition and the Intervenors, the Canadian Wheat Board and Mission Terminals Inc.
"The sale of the AUV terminal in Vancouver will increase the level of competition for grain handling services to the benefit of the Western Canadian grain industry," said Melanie Aitken, Assistant Deputy Commissioner of Competition.
The divestiture of a port terminal was required by the Commissioner in order to remedy the substantial lessening of competition in port terminal grain handling services brought about by the merger of United Grain Growers Limited ("UGG") and Agricore Cooperative Limited on November 1, 2001, which have since been carrying on business as Agricore United.
The Commissioner granted many extensions to Agricore United to sell the AUV terminal. On August 10, 2005, the Commissioner refused to grant a further extension. Agricore United subsequently filed an application to the Tribunal to rescind the Consent Agreement.
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:
Pamela Wong
Communications Officer
External Relations and Public Affairs Branch
(819) 953-7734
For general enquiries, please contact:
Information Centre
Competition Bureau
(819) 997-4282
1-800-348-5358
