Competition Bureau clears electrical distributors merger
December 12th, 2012
The Competition Bureau will not challenge the merger of two major distributors of electrical products, WESCO Distribution Inc. and EECOL Electric Corp., it announced on December 7, 2012.
The Bureau found that the two distributors compete to sell low voltage electrical components in 17 local markets in Western Canada. The Bureau also found that geographic markets for high voltage products are provincial in scope, and that WESCO and EECOL have overlapping operations in at least four provinces.
A number of factors would likely prevent a potential exercise of market power by WESCO post-merger, the Bureau found, particularly the significant bargaining power of manufacturers.
Read the Bureau’s press release.