Cinefed Inc operates the largest film exhibition business in Ontario. Cinefed has theatres in every significant town
Question:
Cinefed Inc operates the largest film exhibition business in Ontario. Cinefed has theatres in every significant town and city in the province. Aside from a few independent theatres, the only competitor of Cinefed in Ontario is Starfilm Ltd, which is much smaller. Over the past few weeks, Cinefed has been negotiating with the owners of Starfilm to buy Starfilm’s business for $100 000 000. Cinefed is hoping that by combining the two businesses, it can get a better price from US film distributors. It might also be able to charge higher prices to its customers. Together, Cinefed and Starfilm would be worth more than $500 000 000 and would control 90 percent of the film exhibition market in Ontario. Would this transaction raise any concerns under the Competition Act?
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0132164429
4th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer