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Google has walked away from a potential Toronto lease with WeWork after months of negotiations, agreeing to take space from rival co-working firm IWG PLC instead, according to people familiar with the matter.

Google signed a multiyear deal for about 24,000 square feet across two floors at IWG’s Spaces location in Royal Bank Plaza, in the heart of the city’s financial district, said the people, who asked not to be identified because the matter is private.

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