Meat Packers Inc

Essay

Meat Packers Inc. was a producer of beef and beef by-products that operated a facility outside a large city. The site of the production facility was scheduled to become part of a new six-lane highway. The facility had been expropriated for the highway and Meat Packers had to vacate the premises. It was unable to locate suitable alternative premises on short notice. Meat Packers, therefore, decided to acquire the business of a competitor and shipped all of its equipment to the newly acquired facility. The two companies merged their operations and carried on under the name of Meat Packers Inc. The meat packing industry was currently in a slump, the result of a decline in consumption of red meat. As a result, there was excess capacity throughout the market area. All of the major competitors were located within the same geographic area. All of these factors were keeping meat prices low. When the Commissioner of Competition received notice of the acquisition, he ordered that Meat Packers Inc. divest itself of the competitor's business pursuant to s. 45 of the Competition Act. Meat Packers wishes to oppose the order. Discuss the arguments it will raise in opposition and indicate how you think the situation would be resolved.
C.P.R. (3d) 289.