Samuel, Son & Co. Limited can complete its acquisition of Wilkinson Steel and Metals Inc. after the Competition Bureau announced that it does not intend to challenge the deal.
Samuel and Wilkinson process, distribute and sell various steel and speciality metals. Samuel operates service centres across Canada and Wilkinson conducts business in Western Canada.
The Bureau investigated relevant product segments, including steel plate, flat rolled carbon steel, aluminum and stainless steel. The business activities of Samuel and Wilkinson overlapped in the resale and distribution of unprocessed steel and in the processing of that product into value-added products that are sold to consumers.
The Bureau found that significant competition from steel mills and wholesalers would continue in the resale and distribution of unprocessed steel, after the merger.
As for value-added services and sales, the Bureau determined that effective competitors would remain in the relevant product segments post-acquisition, there was excess capacity in the industry, and barriers to expansion for competitors were not a concern.
The Bureau therefore concluded that the proposed acquisition was unlikely to substantially lessen or prevent competition.
Read the Bureau’s press release.