Rogers, Shaw make deal to sell Freedom Mobile to Quebecor for $2.85B in hopes of getting merger approval

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Rogers and Shaw struck a blockbuster merger agreement last year, but it has been delayed after the Competition Bureau concluded the combined company would…

The $2.85 billion Freedom transaction, announced late Friday, is subject to regulatory approval

Under the terms of the Divestiture Agreement, Quebecor has agreed to buy Freedom on a cash-free, debt-free basis at an enterprise value of $2.85 billion, expanding Quebecor’s wireless operations nationally, beyond its stronghold in Quebec.Article content “We strongly believe the divestiture will meet the Government of Canada’s objective of a strong and sustainable fourth wireless services provider,” Tony Staffieri, chief executive of Rogers, said in a statement. “This agreement between proven cable and wireless companies will ensure the continuation of a highly competitive market with robust future investments in Canada’s world class networks.

Freedom Mobile has been sought after by a handful of suitors since March, when it became clear federal authorities pushing for greater competition weren’t prepared to accept the “wholesale transfer” of Shaw’s wireless assets to Rogers. “After fifteen years of growth in the Quebec wireless market, we have demonstrated our expertise, our ability to innovate and our financial strength,” Péladeau said.

 

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CompBureau Smoke and Mirrors. The big picture is we are going to move from four big telcos to three big telcos. Who cares about the wireless sale. We are creating a monster that in the long run will only be bad for consumers. Reducing big competition is reducing competition.

AnthonyLacavera wasn’t your offer higher. What are we missing here?

Definitely leaving after this

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