August 15, 2014 11:59 ET
OTTAWA, ONTARIO--(Marketwired - Aug. 15, 2014) - Competition Bureau
The Competition Bureau announced today that, following a review by the Mergers Branch, Bragg Communications Inc. (Eastlink) and Bruce Telecom have terminated their previously announced agreement in which Eastlink would acquire Bruce Telecom. Both companies are facilities-based providers of telecommunications services, including wireline telephone, broadband internet and television, within Bruce County, Ontario.
The Bureau's review concluded that, had Eastlink's acquisition of Bruce Telecom proceeded as proposed, it would have likely resulted in a substantial lessening or prevention of competition in the towns of Port Elgin and Paisley, where the two firms are the only providers of wireline telecommunications services. The parties ultimately decided to abandon the proposed transaction.
"Our review concluded that Eastlink's acquisition of Bruce Telecom would have likely resulted in higher prices and fewer choices for the supply of telecommunications services to the residents of the towns of Port Elgin and Paisley. In the absence of the dynamic rivalry that exists between Eastlink and Bruce Telecom, customers would also have been deprived of the benefits of innovation in their telecommunications services."
John Pecman, Commissioner of Competition
The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.
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