assertion that its wireless business was not profitable “doesn’t stand up to scrutiny,” a lawyer for the Competition Bureau told a hearing into Shaw’s proposed $26-billion merger with Rogers Communications Inc.
The Competition Bureau is asking the tribunal to block the merger of Canada’s two largest cable companies. The watchdog argues that the deal, which would see Quebecor Inc.’s Videotron Ltd. acquire Shaw’s Freedom Mobile, would leave Canada’s fourth-largest wireless carrier severely weakened. any free cash flow, and that Shaw has yet to recoup the $4.5-billion it has invested in wireless since 2016.Alexander Gay, one of the lawyers representing the Competition Bureau, said assertions made by Shaw executives during the hearings are not supported by the numbers. For instance, Shaw’s claim that Freedom Mobile was not generating free cash flow is based on a skewed definition of the metric that isn’t used in any of the company’s financial reporting, Mr. Gay argued.
The tribunal is aiming to release a decision by the end of the year if possible. However, Federal Court Chief Justice Paul Crampton, who is overseeing the hearings, said on Tuesday that it may be challenging to do so, in part because of ongoing disagreements between the two sides over issues such as market definitions.