- Rogers Communications (RCI.A) and Shaw Communications (SJR.B) have received approval from the Competition Tribunal for the acquisition of Freedom Mobile by Videotron Ltd. and the combination of Rogers and Shaw
- The only remaining regulatory hurdle is approval from the Minister of Innovation, Science and Industry for the transfer of Freedom Mobile’s wireless spectrum licenses
- The outside date of the Rogers-Shaw Transaction has been extended to January 31, 2023
- Rogers is a Canadian technology and media company that provides communications services and entertainment to consumers and businesses
- Rogers Communications Inc. Class A opened trading at C$61.50
Rogers Communications (RCI.A) and Shaw Communications (SJR.B) welcome the decision summary by the Competition Tribunal.
The Tribunal’s decision allows the proposed acquisition of Freedom Mobile by Videotron Ltd. and the subsequent combination of Rogers and Shaw to proceed.
The transaction still requires approval from Innovation, Science and Economic Development Canada.
In a summary of its decision released Thursday, the tribunal says the merger of the two telecommunications companies would not result in materially higher prices.
In a joint statement, the companies said,
“We are pleased with the favourable decision from the Competition Tribunal and thank the Tribunal members for their work in rendering a swift decision. This is an important milestone in the regulatory process and moves us one step closer to closing a series of transformative transactions proposed by Rogers, Shaw, and Quebecor. We look forward to reviewing the details of the decision and working with the Minister of Innovation, Science and Industry so we can clear the final regulatory hurdle to close these transactions.”
In addition, Rogers, Shaw and the Shaw Family Living Trust have agreed to extend the outside date of the Rogers-Shaw Transaction to January 31, 2023. Under the terms of the agreement with Quebecor, the outside date for the acquisition of Freedom Mobile by Quebecor has been extended to January 31, 2023.
The Rogers combination with Shaw has already been approved by the shareholders of Shaw, the Court of King’s Bench of Alberta, and the transfer of Shaw’s broadcasting licences to Rogers has been approved by the Canadian Radio-television and Telecommunications Commission. The sale of Freedom Mobile to Quebecor and the Rogers-Shaw merger remains subject to customary closing conditions.
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 opened trading at C$28.97.
Shaw Communications – Class B opened trading at C$35.77.
Rogers Communications Inc. Class A opened trading at C$61.50.