The Competition Bureau (competitionbureau.gc.ca) in Canada reviews all mergers for approval. Its main concern is whether a proposed merger is likely to reduce competition. In this regard, it has set guidelines that allow investors and firms to determine whether a proposed merger passes the Competition Bureau’s test. These guidelines are explained in the link below. laws.justice.gc.ca/eng/acts/C-34/index.html Use the guidelines described above to make your own evaluation of the efficacy of the following mergers:

a. A vertical merger involving a timber mill and a pulp producer, and a conglomerate merger involving a liquor company and a film studio.

b. Rio Tinto’s bid to acquire Alcan (riotintoalcan.com).

c. What is the Efficiency Exception principle in evaluating mergers?