TORONTO — Canadian Competition Bureau has authorized the merger of Canada’s two biggest bookstore chains, but is requiring that the combination of Chapters and Indigo sell some of its large stores and mall chains.
Chapters Inc. announced Thursday that it “has resolved all issues” with the commissioner of competition over its “possible future combination” with Indigo Books & Music Inc.
The agreement with the Competition Bureau requires that Chapters and Indigo “offer for sale certain large-format stores and certain mall stores, along with certain online assets and Chapters’ interest in some or all of the Classic Books, Prospero and SmithBooks trade names,” Chapters said.
The Competition Bureau said it is requiring Chapters and Indigo to sell 13 superstores — in locations determined but not yet made public — and 10 mall stores, along with Classic and SmithBooks, the banners of two Chapters-owned mall chains.
Prospero is a private-label publisher. The company said it expects the competition commissioner to determine the procedure for selling specific stores by mid-April.
Chapters also agreed to adopt a code of conduct on its relations with publishers. Chapters — taken over for $121 million in February by Trilogy Retail Enterprises, a firm headed by Indigo founder Heather Reisman and spouse Gerald Schwartz of Onex Corp. — has set up a special committee of its board to oversee the merger.
