Rogers-Shaw merger mediation session fails to yield settlement

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Rogers Communications Inc. and Canada's competition watchdog have failed to resolve their differences over the telecom giant's $26-billion proposed takeover of Shaw Communications Inc. following a mediation period and weeks of talks.

In a joint press release Thursday evening, Rogers, Shaw and Quebecor Inc. said they are “disappointed” the mediation session did not yield a negotiated settlement.

“The Bureau's unwillingness to meaningfully engage unduly delays lower wireless prices for Canadian consumers,” the release said.In an email, Competition Bureau spokesperson Jayme Albert confirmed that the mediation did not resolve the issues the agency has with the proposed merger. He said it disagrees with the content of the joint statement made by Rogers, Shaw and Quebecor.

Thursday evening's outcome comes just a few days after Industry Minister Francois-Philippe Champagne put new conditions on the deal, specifically targeting the sale of Shaw-owned wireless carrier Freedom Mobile to Quebecor's Videotron, a key component in the proposed transaction. He also said he would “expect to see” wireless prices in Ontario and Western Canada lowered by about 20 per cent, putting them in line with Videotron's current Quebec offerings.

 

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No to merger!

need more competition

Great owning Shaw mean rate hikes.

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