TORONTO – Early Saturday morning, Rogers Communications issued a press release saying it was notified that the Commissioner of Competition will file applications to the Competition Tribunal opposing the company’s proposed $26 billion purchase of Shaw Communications.
Despite that, the two companies said in the release they remain committed to the deal and they are engaged in sale process for full divestiture of Freedom Mobile to maintain strong fourth carrier. Both Xplornet and Quebecor are rumoured to be in negotiations to buy Shaw’s wireless assets.
“Rogers and Shaw remain committed to the transaction, which is in the best interests of Canada and Canadians because of the significant long-term benefits it will bring for consumers, businesses and the economy,” reads the press release.
“The companies have offered to address concerns regarding the possible impact of the transaction on Canada’s competitive wireless market by proposing the full divesture of Shaw’s wireless business, Freedom Mobile. Rogers and Shaw are engaged in a process to sell Freedom Mobile, with a view to addressing concerns raised by the Commissioner of Competition and ISED,” it continues.
Rogers and Shaw will oppose the Commissioner of Competition’s application to prevent the transaction, “while continuing to engage constructively with the Competition Bureau in an effort to bring this matter to a resolution and ensure that the Transaction’s benefits can be realized by all Canadians,” adds the statement.
Rogers, Shaw and the Shaw Family Living Trust also said they agreed to extend the outside date to close the transaction by a month to July 31, 2022. “In addition, Rogers and Shaw will continue to seek approval of the transaction from the Ministry of Innovation, Science and Economic Development,” reads the release.
The deal has already been approved by the shareholders of Shaw, the Court of Queen’s Bench of Alberta, and the CRTC has approved the purchase of Shaw’s broadcasting services.
