By Denis Carmel
GATINEAU, TORONTO and ALBERTA – At the end of the day today, the Competition Bureau announced it had come to an agreement with Rogers and Shaw.
The companies have agreed not to close on their proposed merger until the Competition Tribunal has ruled on the bureau’s application to the tribunal seeking to block their merger.
“Rogers has also agreed not to enforce any condition in its agreement with Shaw… that limits Shaw’s ability to operate, maintain, enhance or expand its wireless business,” the bureau’s news release reads.
The companies and the bureau have also agreed to request an expedited hearing before the Competition Tribunal.
We are not surprised!
The bureau’s news release added, “The Commissioner sought an expedited process given the ongoing harm he has alleged is already occurring in the market.”
“Vigorous competition is essential for Canadians to access affordable, high quality wireless services. I’m pleased this case can now move quickly towards a hearing before the tribunal. Our objective remains to protect Canadians by preserving competition and choice in Canada’s wireless market,” said Commissioner of Competition Matthew Boswell.
Shortly after, Rogers and Shaw issued a joined news release, repeating the elements of the bureau’s own release and adding: “As previously announced, Rogers and Shaw are engaged in a process to fully divest Shaw’s wireless business as part of their proposed merger. Today’s agreement with the Commissioner allows the parties to focus on addressing the Commissioner’s concerns with the Transaction in order to reach a settlement.”
“If a Tribunal hearing is ultimately required to address the Commissioner’s application to prevent the Transaction, Rogers and Shaw intend to oppose it. An expedited schedule of that application is expected to be set soon,” the joint release said.
This implies there are strong hopes of reaching an agreement with the bureau before the matter goes to the tribunal and therefore that the parties are likely still negotiating.
