The largest telecommunications deal in Canadian history will go forward after Rogers Communications Inc.'s $26-billion takeover of Shaw Communications Inc. received approval from Ottawa on Friday.
Posted: Mar. 31, 2023 10:53AMRogers and Shaw applications are pictured on a cellphone in Ottawa on Monday, May 9, 2022.
Champagne approved the transfer of Shaw-owned Freedom Mobile’s wireless licences to Quebecor Inc.’s Videotron, which operates in Quebec and some border regions of Ontario. Rogers and Shaw agreed in June 2022 to sell Freedom Mobile to Videotron for $2.85 billion in an attempt to ease competition concerns raised by the original proposal.
On Friday, the minister said Ottawa’s conditions “should not be taken lightly.” He said they would ensure a “fourth national player can go toe to toe with the Big Three and actually drive down prices.” “We are very pleased to move forward with this transformative merger and proudly deliver on our commitments to enhance and expand network coverage, connect underserved communities, and improve access for low-income Canadians,” said Rogers president and CEO Tony Staffieri in a press release accompanying the announcement.
“I would not mess with the regulator,” he said when asked how the conditions would be enforced. “It’s never a good thing, not only if you have a contract with conditions, but on top of that, just think about the penalties.” “There’s a big incentive for both Rogers and Videotron to shirk the commitments. It creates the incentive for parties to do the math and say, ‘If we lose more money making these commitments, why bother fulfilling the commitments?'”The regulator had argued that approving the merger would reduce competition and result in higher cellphone bills, poorer service and fewer options for consumers. It wanted the court to overturn a Competition Tribunal ruling in favour of the deal.
But he noted the companies had already publicly committed to many of those conditions throughout the two-year process.Sign up for our newsletter to get breaking news and daily digests sent to your email.“I think this deal could have been done a year ago if the Competition Bureau hadn’t been stubborn,” Goldberg said.
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