Rogers, Shaw welcome Tribunal's clearing of merger path, extend closing

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The Competition Tribunal has dismissed an application from Canada's competition watchdog to block Rogers Communications Inc.'s proposed $26-billion purchase of Shaw Communications Inc., clearing a path for the deal to go ahead.

The Competition Tribunal issued a notice late Thursday that it had determined the merger was not likely to result in higher prices for wireless customers in Western Canada, and that it was satisfied the plan to sell Shaw's Freedom Mobile to Quebecor Inc.'s Videotron was adequate to ensure competition isn't substantially reduced.

The decision clears a path for the deal to go ahead, requiring only approval from federal Industry Minster Francois-Philippe Champagne. Rogers and Shaw say they're pleased with the decision and look forward to working with the minister to clear the final regulatory hurdle. The companies also thanked the Tribunal for its swift decision, as they had set a closing date for the deal of Dec. 31, but they said Friday they had extended the close to Jan. 31, 2023.

The head of the Competition Bureau, which had argued that the merger of the two telecommunications companies would lessen competition in the telecom market, trigger higher prices and lead to a worsening of service, expressed dismay at the Tribunal's decision.

 

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I can’t believe they are allowing this to happen. Wasn’t Rogers outage enough of a red flag?

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