IN THE NEWS / It's A Superior Deal - Superior Propane Inc.
Propane giant clears hurdle in bid to take over ICG
By TODD NOGIER, CALGARY SUN
Calgary-based Superior Propane Inc. got a vote of confidence
yesterday in its plan to take over rival ICG Propane Inc.
Federal competition watchdogs failed in their bid to block the
$175-million merger after a two-day hearing with the
Competition Tribunal, a branch of the Federal Court of Canada.
Superior has now cleared a major hurdle in the deal it says is
essential to compete in a market dominated by other fuels such as
natural gas.
"This decision just reinforces all the arguments we've made,"
Superior president Geoff Mackey told the Sun.
The Competition Bureau is not giving up its fight to stop the
merger, however. It is applying for a full hearing into the deal.
The bureau says the merger would give Superior control of 73%
of the national propane market, while in some parts of the
country, such as the Yukon, Northwest Territories and in some
farming regions, it would have a monopoly.
"We have to take these concerns seriously, we have many
customers who have come forward who have asked us to block
this merger," Robert Lancop, assistant deputy director of
competition.
Mackey said 90 of the some 300,000 combined customer base
of Superior and ICG complained of the takeover. "To me, that is
not a very large number opposed," he said.
Superior employs 1,450 while ICG employs 850.
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