A woman holds two cellphones in this photo illustration, Monday, March 29, 2021, in Chelsea, Que. The Competition Tribunal has dismissed an application from Canada's competition watchdog to block Rogers Communications Inc.'s proposed $26-billion purchase of Shaw Communications Inc., clearing a path for the deal to go ahead. THE CANADIAN PRESS/Adrian Wyld
OTTAWA – Rogers Communications Inc. and Shaw Communications Inc. say they welcome the Competition Tribunal’s dismissal of an effort by the Competition Bureau to block their $26-billion merger as they extended the closing date by a month.
The Competition Tribunal issued a notice late Thursday that it had determined the merger was not likely to result in higher prices for wireless customers in Western Canada, and that it was satisfied the plan to sell Shaw’s Freedom Mobile to Quebecor Inc.’s Videotron was adequate to ensure competition isn’t substantially reduced.
The decision clears a path for the deal to go ahead, requiring only approval from federal Industry Minster François-Philippe Champagne.
Rogers and Shaw say they’re pleased with the decision and look forward to working with the minister to clear the final regulatory hurdle.
The companies also thanked the Tribunal for its swift decision, as they had set a closing date for the deal of Dec. 31, but they said Friday they had extended the close to Jan. 31, 2023.
The head of the Competition Bureau, which had argued that the merger of the two telecommunications companies would lessen competition in the telecom market, trigger higher prices and lead to a worsening of service, expressed dismay at the Tribunal’s decision.
This report by The Canadian Press was first published Dec. 30, 2022.
Companies in this story: (TSX:BCE, TSX:RCI.B, TSX:T, TSX:SJR.B)
