Canada’s wireless market continues to show its fluid nature, as Orascom Holdings announced it was backing away from attempting to consolidate its ownership in Wind Mobile. Orascom did note that it was still interested in the move at some point, but that at this time it was withdrawing its application for Investment Canada Act approval with the Canadian government.
Orascom Telecom, which is controlled by Vimpelcom, currently has a 65% indirect ownership stake in Wind Mobile that it acquired when former majority owner Wind Telecom was acquired by Vimpelcom in 2011. Orascom has since been trying to consolidate its ownership of Wind Mobile in Canada following changes in ownership rules that had previously prevented foreign ownership of controlling interests in Canadian carriers.
Those same changes could open the door for reports this week that Verizon Communications was interested in purchasing its way into the Canadian wireless market through the acquisition of a stake in a Canadian operator. The most likely candidates were reported to be Wind Mobile or Mobilicity, both of which are struggling financially to compete in the market dominated by three large incumbents in Rogers Wireless, Telus Mobility and Bell Canada.
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