UPDATE 2-DoJ says Iron Mountain must divest assets to buy Recall Holdings

Thu Mar 31, 2016 4:56pm EDT
 
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(Adds Canada regulator statement; updates shares)

March 31 (Reuters) - The U.S. Department of Justice said records management company Iron Mountain Inc would have to divest some of its assets to get U.S. antitrust approval for its acquisition of Australian rival Recall Holdings Ltd .

The companies will have to sell assets in 15 U.S. metropolitan areas, including Detroit, San Diego, Atlanta and Seattle to proceed with deal, the department said on Thursday.

A spokesman for Iron Mountain declined to comment on the DoJ statement.

Canada's Competition Bureau said late on Thursday that Iron Mountain had agreed to sell its records management facilities and customer contracts in six major Canadian cities to address the regulator's concerns.

Recall Holdings agreed to be acquired by Iron Mountain in June last year after the U.S. company raised its cash-and-stock offer to about $2.6 billion.

Iron Mountain said on Wednesday the deal had been approved by the Australian Competition and Consumer Commission and the UK's Competition and Markets Authority.

Iron Mountain shares closed about 1 percent higher at $33.91 on Thursday. (Reporting by Susan Heavey and David Alexander in Washington, Alan John Koshy and Sai Sachin R in Bengaluru; Editing by Kirti Pandey)