The Competition Bureau has approved R360 Environmental Solutions Canada Inc., an affiliate of Waste Connections, Inc., as the buyer of 29 facilities owned by Secure Energy Services, which supplies oilfield waste services.
In March 2023, the Competition Tribunal issued an order requiring the sale of Secure facilities to an independent purchaser approved by the Bureau.
The Tribunal ordered Secure to sell these facilities to resolve competition concerns in the oilfield waste industry resulting from Secure's July 2021 merger with Tervita Corporation. The facilities include 17 treatment, recovery, and disposal facilities, 4 standalone water disposal wells, 6 landfills and 2 caverns. Secure acquired these facilities as part of the merger.
The Bureau challenged the proposed merger in June 2021. The Bureau's merger review found that the loss of rivalry between Secure and Tervita would result in oil and gas producers likely paying higher prices and experiencing a reduced quality of service.
In March 2023, the Competition Tribunal ruled in favour of the Bureau's challenge. It determined that the merger had caused a substantial lessening of competition in 136 local markets in the Western Canadian Sedimentary Basin. The Tribunal also determined that Secure did not meet the requirements of the efficiencies defence which it invoked.
The Bureau is satisfied that the sale will reintroduce competition for oilfield waste services in the WCSB.
