Rogers awaiting approval to buy competitor Shaw Communications
2023.01.18 11:06
Rogers awaiting approval to buy competitor Shaw Communications
By Kristina Sobol
Budrigannews.com – (NYSE) Rogers The acquisition of Shaw Communications (NYSE) by Communications Inc. for $14.9 billion (C$20) Rogers stated in a legal filing on Tuesday that despite the opposition of the competition bureau, Inc must be allowed to proceed because it has been delayed sufficiently.
On December 30, the transaction that would create Canada’s second-largest telecom company was approved by the antitrust tribunal, but the competition bureau later appealed the tribunal’s decision.
In a separate court document that was filed later on Tuesday, Shaw characterized the competition bureau’s appeal as an “unmeritorious challenge” to carry out a “once-in-a-generation” transaction.
According to Rewheel, a Finnish telecom research company, the merger is seen as a test case for Canada’s capacity to foster competition in its telecoms market, which has the highest wireless bills in the world for consumers.
On January 24, the competition bureau and the businesses will compete in a Federal Court of Appeal hearing.
Rogers stated in its filing that “this pro-competitive transaction has been delayed long enough and must be allowed to proceed.”
The businesses hope to close the deal by the deadline of January 31.
The competition bureau said in a court document it filed on Friday that the tribunal made four mistakes when it decided to dismiss the application to block the acquisition. One of those errors was not properly assessing the “substantiality” of the substantial prevention or lessening of competition.
However, Rogers’ document from Tuesday claimed that the agreement had already been the subject of a lengthy investigation, six months of close case management by Chief Justice Paul Crampton and Tribunal Chair Justice Andrew Little, a carefully sequenced exchange of evidence, two mediations, sixteen motions, and eleven days of discovery.
In the document it filed, it stated that “The Tribunal’s assessment of the actual Transaction was devastating for the Commissioner” and that the deal will significantly increase competition in the supply of wireline and wireless services to Canadians.
After the Federal Court of Appeal’s decision, Canada’s Industry Minister Francois-Philippe Champagne also intends to make an announcement regarding the transaction.
In comparison to Rogers’ offer price of C$40.50 in March 2021, Shaw shares ended the day up 0.4 percent at C$38.28. At C$65.37, Rogers shares gained 0.5 percent.
