Cannibalization Conundrum

Hey everyone.

Dealing with two different websites that are developed for two client segments from the same business. These segments are other businesses and distributors. Copy is different depending on the segment and the brand name has changed, but the products and descriptions are identical, and and pages are near identical.

From an SEO standpoint, this seems like textbook cannibalization nightmare. Im thinking of merging the sites and having the second site content under a different URL structure...

Thoughts?