Competition Bureau Addresses Competition Concerns Regarding WESCO Acquisition of Anixter

CEW anx wes 400

August 7, 2020

Competition Bureau Canada registered a consent agreement with the Competition Tribunal to address its concerns related to WESCO International Inc.’s $6.1B acquisition of Anixter International Inc., which would have combined the two largest distributors of pole line hardware and data communication (datacom) products in Canada. These products are essential inputs in the delivery of electricity and internet to Canadians and Canadian businesses.

Following a thorough review, the Bureau concluded that this transaction would likely have substantially lessened competition in these markets by eliminating the rivalry between WESCO and Anixter, resulting in higher prices and lower quality of service for a large number of customers, including contractors, utilities, cable companies, and telecommunication service providers.

The combination of the two companies would have resulted in high market shares in various markets across the country. The Bureau found that the remaining competitors in these markets generally could not offer comparable product selection, pricing and service, and that barriers to entry or expansion are high.

To remedy the Bureau’s concerns, the consent agreement requires WESCO to divest its datacom division and its utility division. The remedy includes thousands of customer accounts, inventory, key personnel, branch locations and relationships with key manufacturers.

The Bureau is satisfied that this agreement will address its competition concerns in Canada. The consent agreement will be available on the Competition Tribunal website shortly.

Source

Related Articles


Changing Scene

  • Rexel Announces Changes to Group Executive Committee

    Rexel Announces Changes to Group Executive Committee

    December 1, 2023 Rexel today announced the appointment of Roger Little as Chief Executive Officer (CEO) for the USA and leader of the USA-Canada cluster, effective December 18, 2023. Roger Little has been CEO of Rexel Canada since March 2014 and will succeed Brad Paulsen as CEO of Rexel USA as Mr. Paulsen leaves the… Read More…

  • Hammond Power Solutions Declares Quarterly Dividend

    Hammond Power Solutions Declares Quarterly Dividend

    The Board of Directors of Hammond Power Solutions Inc. declared a quarterly cash dividend of fifteen cents ($0.15) per Class A Subordinate Voting Share of HPS and a quarterly cash dividend of fifteen cents ($0.15) per Class B Common Share of HPS payable on December 15, 2023, to shareholders of record at the close of… Read More…


Peers & Profiles

  • Taken from Graybar Canada Linkedin Post Enjoy a glimpse of the wonderful moments from Graybar Canada’s recent customer appreciation BBQs! The company was grateful for the smiles and connections made with our amazing customers and vendors. They are looking forward to the next gathering! Source Read More…

  • Article taken from Linkedin Post Electrozad is thrilled to spotlight their Chatham Branch and recognize their exceptional efforts in cleaning up their community. The team took time to coordinate a community clean-up around their branch. This is a commendable initiative that not only helps maintain the cleanliness and hygiene around the branch but also contributes… Read More…