New thresholds for mergers and acquisitions under the
Competition Act and
Investment Canada Act are now
in effect. These thresholds are adjusted annually based on GDP
formulas and, for the first time, they have decreased. This was a
result of Canada s economic contraction due in large part to
the COVID-19 pandemic.
Under the
Competition Act, the threshold change is not
mandatory and the government s recent approach to the annual
adjustment suggests a belief that the notification threshold should
remain low: it was unchanged in 2020 (when it could have increased
per the GDP formula) and decreased this year (when it could have