{"id":26781,"date":"2022-12-30T23:02:10","date_gmt":"2022-12-30T23:02:10","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/30\/wireless-carrier-rogers-receives-key-approval-for-proposed-14-77b-shaw-acquisition\/"},"modified":"2022-12-30T23:02:10","modified_gmt":"2022-12-30T23:02:10","slug":"wireless-carrier-rogers-receives-key-approval-for-proposed-14-77b-shaw-acquisition","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/12\/30\/wireless-carrier-rogers-receives-key-approval-for-proposed-14-77b-shaw-acquisition\/","title":{"rendered":"Wireless carrier Rogers receives key approval for proposed $14.77B Shaw acquisition"},"content":{"rendered":"

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An antitrust tribunal has ruled that Rogers Communications Inc., Canada\u2019s largest wireless network operator, may complete its proposed acquisition of rival Shaw Communications Inc. for $14.77 billion.<\/span><\/p>\n

The three-member Competition Tribunal issued the ruling late Thursday. Reuters <\/span>reported<\/span><\/a> today that industry analysts expect the acquisition to be completed within days.<\/span><\/p>\n

Rogers provides mobile broadband, home internet and TV subscriptions, as well as a number of other offerings including a consumer banking app. The company has approximately 11.3 million wireless subscriptions in Canada. It <\/span>generated<\/span><\/a> revenue of 3.74 billion Canadian dollars, or about $2.76 billion, during the quarter ended Sept. 30.<\/span><\/p>\n

Shaw generated revenue of 1.36 billion Canadian dollars, or $1 billion, during its <\/span>most recent quarter<\/span><\/a>\u00a0ended Aug. 31. The company operates in many of the same markets as Rogers. It provides mobile broadband services, as well a collection of home internet and TV packages.<\/span><\/p>\n

Rogers originally <\/span>announced<\/span><\/a> its plans to buy Shaw for 26 billion Canadian dollars, or $14.77 million, in March 2021. The acquisition price represents a 70% premium to Shaw\u2019s last unaffected stock price. Rogers said it plans to spend the equivalent of $1.85 billion on the construction of 5G networking infrastructure in Western Canada following the deal\u2019s completion.\u00a0<\/span><\/p>\n

Earlier this year, the Canadian Radio-television and Telecommunications Commission approved the deal. But Canada\u2019s competition regulator, the Competition Bureau, sought to block Rogers\u2019 acquisition of Shaw on antitrust grounds. The regulator referred the matter to the three-member Competition Tribunal that this week ruled to approve the deal.<\/span><\/p>\n

\u201cI am very disappointed that the Tribunal is dismissing our application to block the merger between Rogers and Shaw,\u201d Commissioner of Competition Matthew Boswell said in a statement. \u201cWe are carefully considering our next steps.\u201d Rogers and Shaw <\/span>disclosed<\/span><\/a>\u00a0today that the Competition Bureau is appealing the tribunal\u2019s ruling.\u00a0<\/span><\/p>\n

To address antitrust concerns, Rogers has agreed to sell its Freedom Mobile wireless networking subsidiary to Videotron Inc., a competing broadband provider. The proposed transaction was <\/span>announced<\/span><\/a> in June and is valued at $2.85 billion Canadian dollars, or $2.1 billion. Before it can complete the purchase of Shaw, Rogers must receive approval from Canadian Industry Minister Fran\u00e7ois-Philippe Champagne for the sale of Freedom Mobile to Videotron.<\/span><\/p>\n

According to Reuters, Champagne has hinted his intention to approve the transaction on condition that certain requirements are met. It\u2019s believed that Videotron will be required to retain the assets it will gain through the acquisition of Freedom Mobile for at least 10 years. The carrier must also commit to keep the prices of its broadband packages \u201ccomparable to current levels\u201d in Quebec.<\/span><\/p>\n

Rogers, for its part, has <\/span>stated<\/span><\/a> that the acquisition of Shaw will enable it to roll out 5G networking infrastructure at a faster pace. According to the company, the deal will also create opportunities to increase operational efficiency.\u00a0<\/span><\/p>\n

Image: Rogers Communications<\/h5>\n
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