In the summer of 2009, a few months before the expiry of its 08/09 franchise agreements, Suncor merged with Petro Canada. To ensure that the merger did not run afoul of Canada's competition laws, the Commissioner of Competition required the newly amalgamated corporation to divest 194 retail gas stations in Ontario. Consequently, in October 2009, Suncor announced that it would not offer its current franchisees new one-year agreements when the 08/09 agreements expired in November 2009, and instead would extend the franchise agreements on a month-to-month basis following the end of their respective terms. In January 2010, Suncor delivered termination notices to approximately 125 franchisees, including TAK, advising them that their franchise agreements would terminate in seven months time. After receiving the termination notice, TAK sent Suncor a notice of rescission and served notice of the proposed class action.