CALGARY, Oct. 5 /CNW/ - GARNEAU INC. (TSX: GAR) today announced that the Arrangement Agreement pursuant to which ShawCor Ltd. was to have acquired Garneau Inc. has been terminated. As a result, the proposed acquisition will not proceed. The originally scheduled closing in late May was delayed pending a review by the Competition Bureau (the "Bureau"). The decision not to proceed is based on the inability of the parties to resolve outstanding issues with the Bureau and the prospect of further delays. About Garneau Inc. ------------------ Garneau Inc.'s primary business is the application of high performance protective coatings and linings for oil and gas pipeline protection. Additionally, Garneau Inc. designs and fabricates oilfield equipment for both domestic and international markets. During more than 30 years of operating experience, Garneau Inc. has developed significant expertise and innovative technology, and has maintained a long-term focus on continuously improving the pipe coating process with cost-effective, quality coatings. A talented and effective management team provides the vision and experience for long-term profitable growth and increasing shareholder value. The company's Website can be accessed at: http://www.garneau-inc.com/ %SEDAR: 00008952E