By Ovunc Kutlu
ISTANBUL (AA) - WillScot Holdings Corporation and McGrath RentCorp mutually agreed to terminate their $3.8 billion announced merger, according to a statement Wednesday.
The companies jointly determined that there was "no commercially reasonable path" to clear the necessary regulatory requirements for the transaction, it said.
The path to regulatory clearance would be "excessively onerous" and "would detract from the execution of other value creating initiatives" despite extensive and exhaustive engagement with the US Federal Trade Commission (FTC) over several months, it added.
WillScot would have acquired McGrath for a combination of cash and stock consideration under the terms of an agreement that was announced late January.
The firms are two of the largest modular and portable storage rental companies in the US.
"Strong competition in the markets for modular and portable storage solutions is essential to ensuring low prices and high levels of product quality and customer service for businesses and school districts nationwide," FTC Bureau of Competition Director Henry Liu said in a separate statement.
"FTC staff worked tirelessly to investigate the potential impacts of the proposed acquisition and found that customers in the construction, retail, education and many other industries will benefit from continued competition between these two companies in markets across the country," he added.