Canadian investment company Globalive Capital Inc. says it has entered into an agreement with Telus Corp. Mobile Sharing and Spectrum Sharing – A move to boost Globalive’s efforts to buy wireless assets from Rogers Communications Inc.
The deal comes as Rodgers tries to acquire rival Shaw Communications Inc. for about $ 20 billion ($ 15.6 billion) in one of Canada’s largest mergers. The deal has antitrust issues and Rodgers is in talks with potential buyers of Shaw’s Freedom Mobile division in a bid to resolve them.
Globalive wants to buy Freedom Mobile, and the contract with Telus aims to reassure regulators and government officials that it will be able to offer a quality network that can compete with major Canadian wireless companies.
Under the deal, Telus and Freedom will share networks and spectrum in three Canadian provinces – Ontario, Alberta and British Columbia – where Freedom is currently operating if Globalive manages to acquire it. Over time, it could expand to other regions of Canada, Globalive Chairman Anthony Lacavera said in an interview.
“This makes us a very convincing decision,” he told Freedom Mobile.
Globalive has publicly offered $ 3.75 billion for Freedom, but his discussions with Rodgers have gone nowhere and it is unclear whether the Canadian Competition Bureau or the government will approve the purchase of the country’s fourth-largest wireless player.
The bureau has filed a lawsuit to block the Rodgers-Show merger, saying it worries Freedom will not be a strong competitor in the new property. More than 85 percent of Canada’s wireless market is controlled by Rogers, Telus and BCE Inc., while smaller regional companies such as Freedom have the rest.
Freedom Mobile is a business that Lacavera knows well because it started the company by launching the service in Canada in 2009 under the Wind Mobile brand. It was recapitalized in 2014 and Shaw agreed to buy it the following year.
Rodgers’ auction for Freedom has led to other potential buyers, including Xplornet Communications Inc., backed by New York-based investment firm Stonepeak Partners LP, and the British Columbia-owned Aquilini family, which owns National Hockey League Vancouver Canucks, among others. interests.
Add Comment