In March last year, Rogers Communications had announced that it will purchase Shaw Communications
Canadian operators Rogers Communications and Shaw Communications have agreed to not proceed with closing their proposed merger until either a negotiated settlement is agreed with the Commissioner of Competition or the Competition Tribunal has ruled on the matter.
As a result, there is no need for the Tribunal to hear the Commissioner’s application for an interim injunction, the two telcos said in a statement.
“Rogers and Shaw are engaged in a process to fully divest Shaw’s wireless business as part of their proposed merger. The agreement with the Commissioner allows the parties to focus on addressing the Commissioner’s concerns with the transaction in order to reach a settlement,” the operators said.
The two companies said that they believe the transaction is in the best interests of Canadian consumers, businesses and the Canadian economy, and that a settlement is the best path forward in ensuring that the benefits of the transaction are fully realized.
“If a Tribunal hearing is ultimately required to address the commissioner’s application to prevent the transaction, Rogers and Shaw intend to oppose it,” they said, adding that an expedited schedule of that application is expected to be set soon.
The two companies also said that the transaction will result in a number of benefits including:
-Investing CAD2.5 billion ($1.97 billion) to build 5G networks across Western Canada over the next five years;
-Establishing a new CAD1 billion Rogers Rural and Indigenous Connectivity Fund dedicated to connecting rural, remote, and Indigenous communities across Western Canada;
-An additional CAD3 billion to support further network, services, and technology investments;
-Creating up to 3,000 net new jobs in Western Canada.
In March last year, Rogers Communications had announced that it will purchase Shaw Communications in a CAD20 billion deal.
The transaction has already been approved by the shareholders of Shaw and the Court of Queen’s Bench of Alberta, and the Canadian Radio-television and Telecommunications Commission (CRTC) has approved Rogers’ acquisition of Shaw’s broadcasting services, subject to conditions and safeguards designed to ensure that the transaction benefits Canadians. The transaction remains subject to the approval of the Ministry of Innovation, Science and Economic Development.
Currently, Canadian residents have four options for mobile operators — Rogers, Shaw, Telus Corp. and BCE Inc. — but if the deal is approved, Canadians will have one fewer provider to choose from.
