- An emergency stay issued by the Federal Court will remain until the Competition Bureau’s application for a stay and injunction are heard
- The emergency stay temporarily suspends the Competition Tribunal’s approval of Rogers’ $26-billion takeover of Shaw Communications
- The suspension will remain in place until the Competition Bureau’s application for a stay and an injunction are heard
- Rogers is a Canadian technology and media company that provides communications services and entertainment to consumers and businesses
- Rogers Communications Inc. Class A is down 3.08 per cent, trading at C$63.00 per share at 10:30 am ET
The Federal Court has issued an emergency stay temporarily suspending the Competition Tribunal’s approval of Rogers’ $26-billion takeover of Shaw Communications.
The injunction would block the deal from closing until the Bureau’s full appeal of the decision, rendered on Thursday, is heard.
The Tribunal claimed in its ruling that the merger was not likely to result in higher prices for wireless customers and that it was satisfied a plan to sell Shaw’s Freedom Mobile to Quebecor was adequate to ensure competition isn’t substantially reduced.
The Bureau, on the other hand, had sought to block the merger and, in its appeal, argues that the Tribunal acted outside of its jurisdiction in a “rush to judgment.”
If the Tribunal’s decision stands, the merger will only require the approval of federal Industry Minister Francois-Philippe Champagne to go ahead. Champagne said Saturday that he will wait until there is “clarity” in the ongoing legal process before issuing a decision.
The deal was originally scheduled to close by the end of 2022, with a possible extension to Jan. 31.
Rogers is a Canadian technology and media company that provides communications services and entertainment to consumers and businesses.
Shaw is a leading Canadian connectivity company.
Quebecor Inc.- Class A is down 0.73 per cent on the day, trading at C$30.25 per share at 9:45 am ET.
Shaw Communications – Class B is down 1.85 per cent, trading at C$38.29 per share at 11:15 am ET.
Rogers Communications Inc. Class A is down 3.08 per cent, trading at C$63.00 per share at 10:30 am ET.
