SECURE ENERGY TO APPEAL COMPETITION TRIBUNAL DECISION ON ITS MERGER WITH TERVITA
- The Competition Tribunal has released a summary of its decision ordering the divestiture of 29 of the 103 facilities acquired in connection with SECURE’s merger with Tervita
- SECURE plans to appeal the decision and seek a stay pending that appeal
CALGARY, AB, March 4, 2023 /CNW/ – SECURE ENERGY Services Inc. (“SECURE” or the “Corporation”) (TSX: SES) announced today that the Competition Tribunal (the “Tribunal”) issued its decision in connection with SECURE’s merger with Tervita Corporation (“Tervita”). While the Tribunal agreed with SECURE that not all of the 41 facilities the Commissioner was seeking to have SECURE dispose of should be sold, it issued an order requiring SECURE to divest of 17 treatment, recovery and disposal facilities, 6 landfills, 4 water disposal wells and 2 disposal caverns all formerly owned by Tervita (the “Facilities”). This represented 29 of the 103 facilities acquired in connection with SECURE’s merger with Tervita Corporation.
SECURE will file a notice of appeal together with a motion for a stay of the Tribunal’s order within 30 days.
The merger with Tervita was completed on July 2, 2021 pursuant to an arrangement agreement announced on March 9, 2021 under which SECURE acquired all of the issued and outstanding common shares of Tervita, following which Tervita amalgamated with SECURE.
The Tribunal’s order to divest of the Facilities, if not overturned or modified on appeal, could have a material impact on the business, financial condition or results of operations of the Corporation. SECURE would expect to receive sale proceeds relating to such divestitures which could mitigate, in whole or in part, any such impact.
Rene Amirault Chief Executive Officer of SECURE, stated: “We thank the Tribunal members for their work in rendering a decision, but respectfully disagree with the outcome. The combination of these two great companies has already better positioned us to serve our customers, and pursue our ESG objectives, and has achieved significant efficiencies by optimizing our existing infrastructure assets and operations.”
SECURE is a leading environmental and energy infrastructure business headquartered in Calgary, Alberta. The Corporation’s extensive infrastructure network located throughout key resource plays in western Canada and North Dakota includes midstream processing and storage facilities, crude oil and water pipelines, industrial landfills, waste transfer and metals recycling facilities. Through this infrastructure network, the Corporation carries out its principal business operations, including the gathering, optimization and storage of crude oil and natural gas liquids, and the processing, recovery and disposal of waste streams generated by our energy and industrial customers. The solutions the Corporation provides are designed not only to help reduce costs, but also lower emissions, increase safety, manage water, recycle by-products and protect the environment.
SECURE’s shares trade under the symbol SES and are listed on the Toronto Stock Exchange. For more information, visit www.secure-energy.com.
Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”) including, but not limited to, statements concerning the Tribunal’s decision and the required divestiture of the Facilities, the nature and scope of the financial impact of the required divestitures; SECURE’s intention to appeal the Tribunal’s decisions and seek a stay pending such appeal; the appeal period for the Tribunal’s decision; the effect of the merger with Tervita on SECURE’s ability to serve its customers, pursue its ESG objectives and optimize its existing infrastructure operations; annual EBITDA, its business, financial condition and the results of operations; the timing and process to effect the divestitures; the impact of the divestitures on SECURE’s ability to serve its customers and enhance its business; and other statements that are not historical facts. The use of any of the words ”anticipate”, ”plan”, ”estimate”, ”expect”, ”may”, ”will”, ”should”, ”could”, ”would”, ”believe”, ”pursue” and similar expressions are intended to identify forward looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release. The Corporation does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, the risks and uncertainties described in “Forward-Looking Statements” and “Risk Factors” included in the Corporation’s current Annual Information Form, as filed on SEDAR and available on the SECURE website at www.secure-energy.com.
TSX Symbol: SES
SOURCE SECURE Energy Services Inc.
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