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.
Joe Natale, President and CEO of Rogers Communications, states: “We are proud to join forces with the Shaw family and team as we combine our companies and our 10,000 team members across Alberta, British Columbia, Manitoba, and Saskatchewan, supported by a head office in Calgary. Western Canada is a major driver of our national economy and together we will have the scale, expertise and commitment to deliver the technology infrastructure needed to keep local communities connected, businesses competitive and attract new investment. We’re at a critical inflection point where generational investments are needed to make Canada-wide 5G a reality. 5G is about nation-building; it’s vital to boosting productivity and will help close the connectivity gap faster in rural, remote and Indigenous communities.”
