Russel, Samuel Sale Delayed by Competition Bureau
By
Metal Center News Staff on
Apr 15, 2024
The proposed transaction between Canada’s two largest service center companies is being delayed by the country’s Competition Bureau. The deal is not expected to close in the second quarter.
At the end of 2023, Russel agreed to acquire seven service center companies in Western Canada and the United States. The estimated purchase price was $225 million.
The Competition Bureau has informed the companies of concerns related to “a narrow segment of product in a specific geography,” Russel executives said. Russel and Samuel executives will continue to “engage constructively with the Competition Bureau to bring this matter to a resolution,” Russel added.
If completed as originally agreed upon, Russel will acquire Samuel's metals service centers in Winnipeg, Manitoba; Calgary and Nisku in Alberta; and Langley and Surrey in British Columbia, plus additional facilities in Buffalo, N.Y., and Pittsburgh. Samuel also planned to retain its location in Delta, BC, and conduct an orderly shut-down of that facility.