The proposed Rogers-Shaw merger was initially announced on March 15, 2021
Canadian operators Rogers Communications, Shaw Communications and Quebecor announced an agreement to extend the outside date of the proposed merger of Rogers and Shaw and the acquisition of Freedom Mobile by Videotron, a wholly-owned subsidiary of Quebecor, to February 17, 2023.
The previous outside date to complete the acquisition was January 31.
All parties say that they remain committed to the proposed transactions, which they say will “deliver significant benefits” to Canada and Canadian consumers.
Innovation, Science and Economic Development Canada (ISED) must approve the transfer of spectrum licenses from Shaw to Videotron – in connection with the proposed acquisition of Freedom Mobile by Videotron – before the combination of Rogers and Shaw can proceed. The companies said they continue to work with ISED to secure the final approval needed to close the transactions.
Last week, Canada’s Federal Court of Appeal rejected the competition bureau’s request to block the merger of Rogers and Shaw, a decision that removed one of the final hurdles for the completion of the $20-billion merger.
Canada’s competition bureau initially put on hold Rogers’ proposed purchase of Shaw, as it believed the deal would negatively impact competition in the domestic telecom sector.
At the start of the month, the Competition Tribunal dismissed the appeal to block the deal, stating that the merger would not represent the loss of competition the Commissioner claimed. The competition bureau immediately said it would appeal this decision at the Federal Court of Appeal in Ottawa. Now, this latest appeal has been rejected by the court, which said that the appeal was “without merit”.
The proposed merger was initially announced on March 15, 2021.
In August 2022, Rogers Communications, Shaw Communications and Quebecor entered into a definitive agreement for the sale of Freedom Mobile to Videotron, a subsidiary of Quebecor. The involved parties also said that the sale of Freedom Mobile would pave the way for the establishment of a “strong fourth national wireless services provider”, something that would address the concerns initially raised by the Commissioner of Competition and the Minister of Innovation, Science and Industry regarding the Rogers-Shaw merger.
The new combined business of Videotron and Freedom Mobile will be in a position to launch a national 5G offering, using Videotron’s 3.5 GHz frequencies.
The Rogers-Shaw 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, but remained subject to review by the Competition Tribunal and Competition Bureau and approval by the Minister of Innovation, Science and Industry.
François-Philippe Champagne, Minister of Innovation, Science and Industry, recently confirmed that the federal government’s decision whether or not to approve the merger will focus on making sure the process will provide more competition and affordability for Canadians.
