a Japanese company (Opco 1) merged with its Japanese subsidiary (Opco 2) and grandchild Japanese subsidiary (Opco 3) in a merger by absorption (kyusu gappei) under which Opco 1 was the surviving entity and Opco 2 and 3 were dissolved. As this was not a continuation type of amalgamation described in The Queen v. Black and Decker, [1975] 1 S.C.R. 411 (two streams coming together but continuing to exist) Opco 2 was considered to have disposed on the merger of its shares of two Canadian subsidiaries, thereby realizing the accrued gains on those shares.
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