(Bloomberg) — Rogers Communications Inc. and Shaw Communications Inc. said they were notified by Canada’s Competition Bureau that it intends to file applications against their C$20 billion ($16 billion) deal.
Rogers and Shaw will oppose the competition agency’s application to prevent the deal while engaging with it to find a resolution, the companies said in a statement. They will also still continue to seek approval from the Ministry of Innovation, Science and Economic Development.
Opposition by the antitrust agency could delay or derail one of Canada’s biggest-ever mergers, which the companies had been trying to close this quarter. In March, the Canadian broadcast regulator approved Rogers’ purchase of Shaw’s cable television assets, but it still needed the green light from the competition watchdog and the federal government.
“Rogers and Shaw 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 said.
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The antitrust review was expected to be the most difficult obstacle. Rogers, the country’s largest wireless and cable provider, has offered C$40.50 cash per Shaw share for an acquisition that would allow it to become a national cable player and bolster its wireless infrastructure in Western Canada.
Rogers buying Shaw would eliminate the No. 4 wireless competitor in major cities like Toronto and Vancouver.
The companies said they have offered to address concerns regarding the impact of their merger on Canada’s wireless market, including the sale of Shaw’s Freedom Mobile business. The Globe and Mail earlier reported that Rogers presented Canada’s government a deal for Xplornet Communications Inc. to buy Freedom Mobile in April as part of the effort to get approval for the Shaw merger.
Rogers Hits Record as Outlook Improves Ahead of Shaw Deal
(Updates with comments from companies from paragraph four)
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