Williams Communications

(WCG) - Get Report

agreed to sell its Canadian enterprise services business division,

Williams Communications Canada

, to

Telus

(TU) - Get Report

, but the financial terms of the deal weren't disclosed.

Telus plans to retain Williams Communications Canada's employees, and the company expects to close the merger May 31. The acquisition requires regulatory approval. Telus, which is based in Burnaby, British Columbia, is a telecommunications service provider.

In January, Williams Communications

signed a deal to sell its U.S. and Mexico enterprise services businesses to privately owned firm

Platinum Equity

in a bid to focus on its core broadband network businesses. The company expects to close the Platinum transaction March 31.

Earlier this month, Williams Communications, Tulsa, Okla., said it would

issue $1.4 billion of structured notes due 2004 and use the proceeds for capital spending on telecom assets.

In recent

New York Stock Exchange

trading, shares of Williams Communications, which provides voice, data, Internet and video services to communications service providers, gained 22 cents, or 2.3%, to $9.97. Telus lost 16 cents, or 0.8%, to $19.97.