Rogers Communications Inc. and Shaw Communications Inc. have expressed their opposition to the Commissioner of Competition’s intention to file applications to the competition tribunal preventing Rogers’ proposed merger transaction with Shaw.
Rogers and Shaw have stated that they remain committed to the transaction, which is in the best interests of Canada and Canadians because of the significant long-term benefits it will bring for consumers, businesses and the economy. They also said they will continue to engage constructively with the Competition Bureau in an effort to bring this matter to a resolution
The companies have offered to address concerns regarding the possible impact of the transaction on Canada’s competitive wireless market by proposing the full divesture of Shaw’s wireless business, Freedom Mobile. Rogers and Shaw are engaged in a process to sell Freedom Mobile, with a view to addressing concerns raised by the commissioner of competition and ISED.
The transaction will provide both Rogers and Shaw with the capabilities necessary to invest in digital infrastructure, create jobs, drive innovation, increase choice, and bridge the digital divide. In addition, it will foster greater competition by creating Canada’s most robust wholly-owned national network, and generating more choice for businesses and consumers so they may realize the full economic and social benefits of next generation networks.
Following the transaction, $2.5 billion will be invested to build 5G networks across Western Canada over the next five years; a new $1 billion Rogers Rural and Indigenous Connectivity Fund dedicated to connecting rural, remote, and Indigenous communities across Western Canada will be established; an additional $3 billion will be generated to support further network, services, and technology investments; up to 3,000 net new jobs will be created in Western Canada; and Rogers Connected for Success program will be extended across Western Canada to bring the first of its kind low-cost broadband program nationally to help seniors and low-income Canadians in every community where the combined company offers Internet services.
In order to permit continued engagement with the competition bureau, Rogers, Shaw and the Shaw Family Living Trust have agreed to extend the outside date of the Transaction to July 31, 2022. In addition, Rogers and Shaw will continue to seek approval of the transaction from the ministry of innovation, science and economic development.
The 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 (CRTC) has approved Rogers’ acquisition of Shaw’s broadcasting services, subject to conditions and safeguards designed to ensure that the transaction benefits Canadians. In addition, the transaction remains subject to the approval of the Ministry of Innovation, Science and Economic Development and other customary closing conditions.