Rogers and Shaw to sell Freedom Mobile wireless business to Quebecor for $2.85 billion

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Companies say they hope the agreement will pave the way for Ottawa to approve the larger $26-billion merger deal

Rogers and Shaw said they have reached a deal to sell Shaw’s wireless business Freedom Mobile to Quebecor for $2.85 billion.

Now, the companies hope the agreement with Quebecor will stave off the legal fight by convincing Ottawa that it can approve the deal without killing off a challenger to the Big Three in Ontario, British Columbia and Alberta, where Freedom Mobile operates. “This is a turning point for the Canadian wireless market,” said Quebecor CEO Pierre Karl Péladeau, “Quebecor's Vidéotron subsidiary is the strong 4th player who, coupled with Freedom’s solid footprint in Ontario and Western Canada, can deliver concrete benefits for all Canadians.”

Rogers wants to acquire Shaw’s cable networks, which would give it more than four million additional television, internet and landline telephone customers as well as valuable fibre-optic networks that could help it build 5G wireless service. In its own response on Friday afternoon before the Quebecor deal was announced, the Competition Bureau said the efficiencies claimed by the companies are “speculative, unproven and unlikely to be achieved in whole or in part or are grossly exaggerated” and not enough to save the merger.

 

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So everyone who has Shaw or Rogers have to speak French when they make a phone call?

Nooooooooooo

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