The Canadian government has finally approved the $26 billion takeover of Shaw by Rogers after nearly two years of delays. When the merger was first announced by Rogers in 2021, it stirred up a significant amount of competition concern.
But Industry Minister François-Philippe Champagne appears to have heeded some of these concerns. In his statement on the merger, the minister said the deal’s approval is contingent on a series of legally enforceable conditions for Rogers and Videotron, the company that Shaw is selling its Freedom Mobile wireless business to.
Meeting these low-cost conditions shouldn’t be an issue for the merged company. According to Rogers, the financial benefit of the merger will be around $1 billion annually. Increasing internet access This merger also has the potential to play a key role in Canada’s 5G infrastructure and increasing internet access for Canadians.
Given that 98.6 per cent of households in urban areas can access to broadband, but only 45.6 per cent of rural households and 34.8 per cent of First Nations reserves can, the merger could benefit rural markets substantially.