Quebecor, Rogers Communications, and Shaw Communications issued the following statement late last week after a mediation session as part of Canada’s Competition Tribunal process failed to reach an agreement that would allow the Rogers + Shaw merger to proceed:
““The mediation did not yield a negotiated settlement. We are disappointed with this outcome and believe that litigation is both unnecessary and harmful to competition. The Bureau’s unwillingness to meaningfully engage unduly delays lower wireless prices for Canadian consumers.
We remain committed to completing this pro-competitive series of transactions and are confident in the strength and merits of our case in front of the Competition Tribunal, including the many benefits of these transactions to Canadians.
Once completed, our proposed series of transactions will positively transform the Canadian telecommunications industry in both the wireline and wireless segments. The combined Videotron-Freedom business will have everything it needs to compete as a stronger fourth carrier for the long term, including critical 5G spectrum. Quebecor’s commitment to lower wireless prices for Canadians across the country is one of the many benefits that the proposed transactions will create.
At the same time, the combined Shaw-Rogers wireline business will have a national network positioned to compete against the telcos for the long-term.”
Rogers + Shaw merger to reshape Canadian market
Rogers Communications agreed to acquire Shaw Communications in a $26 billion deal that could reshape the Canadian communications market. Under the transaction, Rogers will acquire all of Shaw’s Class A and Class B shares for $40.50 per share, reflecting a ~70% premium to Shaw’s Class B share price.
The merger will create Canada’s most robust wholly-owned national network and accelerate the deployment of 5G. Once the transaction is complete, the companies plan to invest $2.5 billion in 5G networks across Western Canada, which is expected to create up to 3,000 net new jobs. The deal brings together Shaw’s fibre-to-home, WiFi and wireless networks with Roger’s national wireless network and 5G capabilities.
Both Rogers and Shaw began as family operated businesses.
Rogers will also commit to establishing a new $1 billion Rogers Rural and Indigenous Connectivity Fund to connect rural, remote and Indigenous communities across Western Canada to high-speed Internet and closing critical connectivity gaps faster for underserved areas.
