Competition Tribunal decides Rogers-Shaw merger can move ahead

Canada’s Competition Tribunal cleared the way for the Rogers-Shaw merger to move ahead after dismissing the Competition Bureau’s application to block the proposed $26 billion acquisition.

The deal still requires approval from Innovation, Science and Economic Development Canada (ISED) and a spokesperson for Minister François-Philippe Champagne told The Globe and Mail that ISED is reviewing the tribunal’s decision and “will have more to say in due course.”

The Competition Tribunal released a summary of its decision on December 29th and plans to release a more detailed decision in the next two days. The summary notes that the tribunal found the merger would not result in materially higher prices.

Moreover, the decision said the sale of Shaw’s Freedom Mobile to Quebecor-owned Vidéotron — a key pillar of the deal — would likely not prevent or lessen competition substantially. Earlier this year, Quebecor agreed to buy Freedom for $2.85 billion.

The tribunal also dismissed concerns that Bell and Telus would not be able to compete with the combined Rogers and Shaw.

“I am very disappointed that the tribunal is dismissing our application to block the merger between Rogers and Shaw. We are carefully considering our next steps,” said Matthew Boswell, commissioner of the federal Competition Bureau, in a statement on the 29th. The Competition Bureau has 30 days to appeal the tribunal’s decision.

Additionally, The Globe and Mail reported that Rogers and Shaw agreed to extend the deadline of the proposed merger into 2023. The extension requires Rogers to pay its bondholders $250 million.

Source: The Globe and Mail, CBC News