Competition Tribunal hearing shifts to potential cost savings generated by proposed Rogers-Shaw merger

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Competition Tribunal hearing shifts to potential cost savings generated by proposed Rogers-Shaw merger
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Cost savings, or efficiencies, are a critical issue because Canadian competition law allows a merger to close if it results in lower total costs for the businesses even if it lessens competition

has shifted to the potential cost savings that would be generated by combining Canada’s two largest cable companies.

Shaw Communications wireless growth slows as company awaits verdict on $26-billion takeover by Rogers Earlier this month, Ottawa formally launched a review of Canada’s competition laws. The review will consider the scope of the Competition Act, whether additional penalties are needed and how competition policy should address digital and data-driven markets.

The companies would also save on administrative costs related to being a public company, such as director fees, audit fees and insurance costs, according to Mr. Harington’s report.that will be paid to Shaw executives from the efficiencies.

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What about the increased coststo consumers? The merged company will start raising prices shortly after to pay for this merger!

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