Canada OKs WESCO’s $4.5B Anixter Deal With Divestments

Canada’s Competition Bureau has ordered Wesco to divest its local utility and data communications divisions to address the enforcer’s concerns that its €3.8 billion (US$4.5 billion) tie-up with Anixter would eliminate competition from two national markets.

After a comprehensive review, the Bureau concluded that this transaction would likely have significantly lessened competition in these markets by eliminating the rivalry between WESCO and Anixter, resulting in higher prices and lower quality of service to a large extent. number of customers, including contractors, utility providers, cable companies and telecommunications service providers.

In order to resolve the Bureau’s concerns, the consent requires WESCO to divest itself of its data communications products and utilities divisions. The corrective action affects thousands of customer accounts, inventories, key personnel, branches, and relationships with major manufacturers.

Full Content: News Wire

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