WM Must Divest Some Capacity to Buy RCI in Quebec

Date: February 6, 2013

Source: Competition Bureau

As a condition of its purchase of RCI Environnement Inc., Waste Management, Inc.'s Quebec subsidiary WM Quebec Inc. agreed to divest the right to dispose 1.875 million tons of waste over 20 years at RCI's landfill in Lachute, Quebec. Canada's Competition Bureau required the divestiture as a condition of the purchase in order to preserve competition for waste disposal in western Quebec. RCI Environnement (Anjou, Quebec), which was founded in 1997 and has 350 employees, provides integrated waste services to 1.2 million residential and 20,000 commercial and industrial customers throughout Quebec.

February 6, 2013

Agreement Reached to Preserve Competition for Waste Disposal Services in Western Quebec

The Competition Bureau announced today that it has reached an agreement with WM Québec Inc. (WMQ), the Quebec operating subsidiary of Waste Management, Inc., that preserves competition for solid non-hazardous waste disposal in Western Quebec.

Following an extensive review, the Bureau determined that the proposed acquisition of the assets of RCI Environnement Inc. (RCI) by WMQ would result in a substantial lessening or prevention of competition for waste disposal services in the following areas in Western Quebec: Argenteuil, Gatineau, La Rivière-du-Nord, La Vallée-de-la-Gatineau, Les Collines-de-l'Outaouais, Les Laurentides, Les Pays-d'en-Haut, Papineau, and Pontiac. The Consent Agreement announced today resolves the Bureau's competition concerns.

"I am satisfied that WMQ has agreed to the necessary steps to address the competition concerns identified by the Bureau," said John Pecman, Interim Commissioner of Competition. "A monopoly in waste disposal services would have resulted in higher prices for customers, including municipalities and businesses, while also restricting the ability of rival waste collection companies to compete in these markets."

Under the Consent Agreement registered with the Competition Tribunal today, WMQ is required to sell the right to dispose of up to 1.875 million tonnes of waste over 20 years at the landfill in Lachute, Que bec. The sale will preserve competition in the areas above by ensuring that the buyer will have access to sufficient landfill capacity to effectively compete for business in those areas. The Bureau will appoint an independent monitor to ensure that WMQ complies with the terms of the Consent Agreement.

WMQ and RCI also provide solid non-hazardous waste collection, transferring, and disposal services, as well as sorting of recyclable material, in other parts of Quebec. The Competition Bureau determined that the proposed acquisition of RCI by WMQ would not result in a substantial lessening or prevention of competition in these other areas due to the presence of effective competitive alternatives, among other factors.

A copy of the Consent Agreement will be available shortly on the Competition Tribunal website, at www.ct-tc.gc.ca.

The Competition Bureau, as an independent law enforcement agency, ensures that Canadian businesses and consumers prosper in a competitive and innovative marketplace.

Enquiry (www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/frm-eng/GH%C3%89T-7SEN3J) / Complaint Form (www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/frm-eng/GH%C3%89T-7TDNA5).

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