Rogers Communications and Shaw Communications say the Canadian Competition Commissioner plans to oppose the proposed multibillion-dollar merger of the two Canadian rival companies.
In a joint statement issued Saturday, Rodgers and Shaw said they had been informed of Matthew Boswell’s intention to prevent the deal, adding that they would oppose the expected statement and continue to engage with the Competition Bureau in an attempt to resolve the issue. .
Toronto-based Rodgers announced last year its plan to buy the Calgary-based Show in a $ 26 billion deal, including debt. The Canadian Commission on Broadcasting and Telecommunications (CRTC) approved the acquisition in March, but set a number of conditions.
Read more: Rodgers’ takeover of Shaw removes the CRTC hurdle. Here’s what happens next
“Rodgers and Shaw remain committed to the deal, which is in the best interests of Canada and Canadians because of the significant long-term benefits it will bring to consumers, businesses and the economy,” the companies said Saturday.
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The companies said they had offered to address concerns about the possible impact of the deal on Canada’s competitive wireless market by offering to sell Shaw’s wireless business, Freedom Mobile.
3:16 Rodgers and Shaw will merge in a $ 26 billion deal Rodgers and Shaw will merge in a $ 26 billion deal – March 15, 2021
In addition to the CRTC, the deal was approved by Shaw’s shareholders and the Queen’s Bench court in Alberta.
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However, a number of obstacles remain, including the green light from the Ministry of Innovation, Science and Economic Development.
Read more: CRTC approves Rodgers’ takeover of Shaw, but on expensive terms
Rodgers and Shaw said they had agreed to extend the deal until July 31, 2022, to allow the commitment to continue with the Competition Bureau.
In the acquisition, Rodgers will acquire 16 cable services based in Western Canada, a national satellite television service and other broadcasting and television services.
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2:01 Rodgers promises better internet in rural areas, consumer search options and advocates Rodgers promises better internet options in rural areas, consumer search options and lawyers – March 22, 2021
The deal met with resistance from competitors and government officials.
Ottawa has promised to block the full transfer of Rogers ‘wireless licenses, and the House of Commons Industry and Technology Committee said earlier this year that Rodgers’ bid for the show should not continue. If that happens, the commission said the government must set conditions for the deal.
Rodgers and Shaw have expressed confidence that the rest of the deal will be approved. They say a concerted effort is needed to ensure greater connectivity with rural and local communities and to compete in an increasingly globalized content market.
– With files from Sean Boynton and The Canadian Press
© 2022 Global News, a division of Corus Entertainment Inc.
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