Site icon TelecomLead

Rogers’ $15.4 bn deal to buy Shaw gains momentum

Some of the telecom industry experts in Canada are expecting that Rogers Communications’ $15.4 billion deal to buy Shaw Communications will receive the approval following their decision to sell Freedom Mobile unit to Quebecor for C$2.85 billion, including wireless and internet customers.
Rogers 5G network in CanadaCanada’s competition commission on Monday said it would assess remedy offers to address the competition issues but that any remedy must eliminate a substantial reduction or prevention of competition due to the merger.

The commission had initially filed its objection to the merger last week, saying the sale of Freedom was not enough to maintain competition.

Rogers had previously attempted to sell Freedom to two other bidders, but the commission in its petition last month said those companies were not in a position to uphold competition in Canada, which has the world’s highest wireless charges.

Reuters previously reported that the government sees Quebecor as a credible buyer for Freedom, in a boost to Rogers’ latest effort.

Both parties will go to the competition tribunal to seek mediation and the case could close by June 28 if they reach a settlement, according to the competition tribunal website.

The companies said the move would ensure the government’s mandate of having a viable fourth competitor in Canada’s expensive telecom market.

A spokesperson for ministry of innovation, science and economic development said the ministry would review Rogers’ sale of Freedom as the regulator responsible for spectrum transfer.

Exit mobile version