Quebecor Inc. agrees with Rogers Communications Inc. and Shaw Communications Inc. to buy Freedom Mobile for a corporate value of $ 2.85 billion, the companies announced on Friday.
The deal comes after the antitrust regulator reiterated that it opposes Rodgers’ plan to buy Shaw and is subject to approval by the Canadian Competition Authority and the Federal Department of Innovation, Science and Economic Development, the companies said.
It covers all of Freedom’s branded wireless and Internet customers, infrastructure, spectrum and retail sites, they added in a statement.
Toronto-based Rodgers made a $ 26 billion offer for Calgary-based Shaw and also offered to sell the Shaw Freedom mobile device to allay competition concerns as part of the deal.
The deal ensures “viable and sustainable” competition, the companies say
The Competition Bureau said the sale would weaken Freedom’s operations, reduce “competitive discipline” among national carriers and lead to the transfer of wealth from low- and middle-income groups to wealthy Rodgers-Shaw families.
“The parties firmly believe that the agreement effectively addresses concerns … about viable and sustainable wireless competition in Canada,” they said in a statement, citing reservations from the competition authority and the industry minister.
The companies will also provide transportation and roaming services to Quebec as part of the deal.
“We look forward to receiving exceptional regulatory approval for our merger with Shaw so that we can deliver significant long-term benefits to Canadian consumers, businesses and the economy,” said Rodgers CEO Tony Stafieri.
Canadian law allows the approval of mergers that are detrimental to competition if companies can demonstrate that the mergers bring efficiency to the economy.
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