Competition Bureau approves Alliance acquisiton

Media | 01/07/2013 9:27 pm EST

The Competition Bureau issued a “no action letter” related the proposed acquisition of Alliance Films Holdings Inc. by Entertainment One Ltd. In a release Jan. 3, the bureau said it was initially concerned by the purchase, in which eOne will purchase all of Alliance’s outstanding shares, because the new entity would be in a position to implement “more restrictive” distribution terms on producers, such as higher distribution fees or reduced minimum guarantees. The bureau noted that to be eligible for funding for Canadian productions, a film producer must use a Canadian distributor. The bureau concluded that “the policies in place affecting the promotion and distribution of Canadian films would make it unlikely that a substantial lessening or prevention...