The proposed merger between Rogers and Shaw was initially announced on March 15, 2021
Canada’s competition bureau said a federal court has issued an emergency stay that temporarily suspends the country’s competition tribunal’s dismissal of its case against Rogers Communications’ CAD20 billion ($14.8 billion) acquisition of Shaw Communications.
The competition bureau noted that the suspension will remain in place until its application for a stay and an injunction is heard.
If the tribunal’s decision stands, the merger will only require the approval of federal Industry Minister Francois-Philippe Champagne to go ahead. Champagne recently said that he will wait until there is clarity in the legal process before issuing a decision regarding the proposed merger.
Last week, Canada’s competition tribunal approved Rogers Communications’ bid for rival operator Shaw Communications.
The ruling stated the Rogers-Shaw merger after the sale of Freedom Mobile may not prevent or lessen competition or lead to higher prices or a decline in quality of service.
In July 2022, Rogers Communications said it had delayed the deadline for its proposed acquisition of Shaw Communications to December 31, 2022, with the potential to extend it this deadline. Now the two companies said they have agreed to extend the outside date of the proposed merger to January 31, 2023. The proposed merger had been initially announced on March 15, 2021.
Canada’s competition bureau initially put on hold Rogers’ proposed purchase of Shaw, as it believed the deal would negatively impact competition in the domestic telecom sector.
In August 2022, Rogers Communications, Shaw Communications and Quebecor had entered into a definitive agreement for the sale of Freedom Mobile to Videotron, a subsidiary of Quebecor. The involved parties also said that the sale of Freedom Mobile would pave the way for the establishment of a “strong fourth national wireless services provider”, something that would address the concerns raised by the Commissioner of Competition and the Minister of Innovation, Science and Industry regarding the Rogers-Shaw merger.
The new combined business of Videotron and Freedom Mobile will be in a position to launch a national 5G offering, using Videotron’s 3.5 GHz frequencies.
The Rogers-Shaw transaction has already been approved by the shareholders of Shaw and the Court of Queen’s Bench of Alberta, and the Canadian Radio-television and Telecommunications Commission, but remained subject to review by the Competition Tribunal and Competition Bureau and approval by the Minister of Innovation, Science and Industry.
