The Canadian Commissioner for Competition intends to oppose the proposal of Rogers Communications Inc. a $ 26 billion merger with Shaw Communications Inc., the companies said in a statement issued early Saturday.
The telecoms giants said they had been informed of the commissioner’s plan to submit a statement to the Competition Tribunal aimed at preventing the deal after the close of trading on Friday.
They said they would oppose the statement, “continuing to engage constructively with the Competition Bureau in an attempt to resolve the issue”.
The companies said they remain committed to the planned merger and that it will be “in the best interests of Canada and Canadians because of the significant long-term benefits” for consumers, businesses and the economy.
When he announced the planned takeover in March 2021, Toronto-based Rodgers said it would invest $ 2.5 billion to expand 5G networks in western Canada over the next five years following the acquisition of Calgary-based Shaw. Rodgers also plans to set up a $ 1 billion fund to connect rural, remote and local communities.
To address concerns about the impact the deal would have on Canada’s wireless market, the companies offered a full sale of Shaw’s wireless business, Freedom Mobile.
The deal will allow Rodgers to acquire 16 cable services based in Western Canada, a national satellite television service and other broadcasting and television services. The acquisition will create Canada’s second-largest cellular and cable operator.
With the acquisition of the fourth Shaw, Rodgers will overtake Telus Corp. and will take over the market leader BCE Inc. in the highly competitive Canadian telecommunications industry.
The Canadian Broadcasting and Telecommunications Commission, the country’s telecommunications regulator, said in March that it had approved Rodgers’ planned acquisition of Shaw’s broadcasting services, subject to a number of conditions.
The Competition Bureau and Canada’s Innovation, Science and Economic Development are reviewing Shaw’s proposed takeover of home telephone, wireless and Internet services.
Add Comment