SINGAPORE'S PSA International's proposed acquisition of a rival terminal operator at the port of Halifax has drawn the scrutiny of Canada's anti-competition watchdog, which is investigating whether the deal could increase container handling fees or degrade service offerings, reports IHS Media.

Canada's Competition Bureau said that a federal court granted the agency's request to get records and other information related to PSA Canada Ventures' proposed buyout of Ceres Halifax, which operates the 70-acre Fairview Container Terminal.

The Competition Bureau said it could force the two sides to call off the deal if it is found to be anti-competitive. PSA declined to comment.

"The Bureau is investigating whether the proposed transaction is likely to result in a substantial lessening or prevention of competition for marine carriers that make port calls at the Port of Halifax," it said in a statement.

"Specifically, the Bureau is investigating whether this potential loss of competition may provide PSA with the ability to impose a material price increase or service level decrease on the services offered to these marine carriers."

Fairview, which can berth two super post-Panamax ships, has an annual throughput of 650,000 TEU, according to the Halifax Port Authority. Japanese shipping line and THE Alliance member NYK acquired Ceres in 2002.

Singapore-based PSA operates the nearby South End Container Terminal, a 76-acre operation that has annual throughput of 500,000 TEU. Last year, South End completed a berth expansion that will allow it to service two, super post-Panamax ships.