OTTAWA – Videotron, a subsidiary of Quebecor, has filed a notice of motion with the Competition Tribunal, asking to be granted leave to intervene in the proceeding dealing with the Commissioner of Competition’s application to the tribunal to have the proposed merger of Rogers Communications and Shaw Communications blocked.
The notice of motion, posted to the tribunal’s website today, indicates Videotron is further seeking a confidentiality order on terms to be discussed should leave to intervene be granted.
Videotron intends to intervene in the proceeding in support of Rogers and Shaw. Last month the three companies announced they reached an agreement for Quebecor to purchase Shaw’s Freedom Mobile in a deal valued at $2.85 billion.
Minister of Innovation, Science and Industry François-Philippe Champagne indicated a few months prior to the announcement that he would not allow Rogers to acquire all of Shaw’s wireless assets.
The Competition Bureau has also expressed concerned about Rogers’ acquisition of Shaw’s wireless assets, with the Commissioner of Competition going so far as to apply to the Competition Tribunal to have the deal blocked.
Rogers, Shaw and the Commissioner of Competition went through two days of mediation earlier this week to attempt to resolve the issues the commissioner has with the proposed merger. No resolution was found, and the commissioner has maintained that the sale of only Freedom is not an adequate remedy.
The notice of motion filed by Videotron says prior to mediation, on June 30, 2022, representatives of Videotron met with the commissioner at the request of the commissioner’s counsel. Videotron representatives also attended the two days of mediation with Rogers, Shaw and the commissioner.
“The Commissioner has taken the position that the Divestiture may not remedy the substantial lessening and prevention of competition that results from the Proposed Transaction,” the notice of motion says.
“Through its intervention, Videotron proposes to show why the Divestiture entirely eliminates any substantial lessening or prevention of competition, or at least reduces it to a level that is not substantial.”
Videotron asserts that by acquiring Freedom Mobile, it “will be able to quickly and efficiently expand its operations outside of Quebec and will fulfill the federal government’s longstanding policy objective of fostering the emergence of a fourth national wireless carrier.”
For the full notice of motion, please click here.
