Rogers finalizes $26-billion merger with Shaw after receiving government approval
TORONTO –
Rogers Communications Inc. has closed its $26-billion buy of Shaw Communications Inc. after receiving closing approval from Ottawa final week, bringing to an finish two years of uncertainty as regulators scrutinized the deal.
“This is a momentous day for our customers, who will benefit from the latest services and network technology, and for our teams, who have worked so hard to get us here,” mentioned Rogers CEO Tony Staffieri in a press launch.
“We’re proud to bring together these two iconic companies to deliver more value, more connectivity, and more innovation for Canadians.”
Industry Minister Francois-Philippe Champagne gave the inexperienced mild to the takeover on Friday by agreeing to the switch of Shaw-owned Freedom Mobile’s wi-fi licences to Quebecor Inc.’s Videotron, the ultimate regulatory step permitting the primary deal to go forward.
Rogers and Shaw agreed in June 2022 to promote Freedom Mobile to Videotron for $2.85 billion in an try and ease competitors issues raised by the unique proposal. Freedom’s sale was additionally finalized on Monday.
In approving the deal, Champagne introduced 21 situations that Rogers and Videotron should adhere to, together with Rogers establishing a second headquarters in Calgary and including 3,000 new jobs primarily based in Western Canada.
It should additionally spend $5.5 billion to increase 5G protection and extra community companies, in addition to an additional $1 billion to attach rural, distant and Indigenous communities.
Videotron should supply plans which are not less than 20 per cent decrease than its opponents and spend $150 million over the following two years to improve Freedom Mobile’s community.
If Rogers breaches its situations, it should pay as much as $1 billion in damages. Videotron would probably be topic to $200 million in penalties if it fails to fulfill its commitments.
“We are very pleased to be closing the acquisition of Freedom Mobile today, bringing its Canadian footprint as well as the expertise and experience of its employees into our fold,” mentioned Quebecor president and CEO Pierre Karl Peladeau in a press launch.
“The alliance of Freedom and Videotron will permanently transform Canada’s wireless market for the benefit of consumers and create a new competitive environment that delivers innovative products and services at better prices.”
Champagne additionally introduced his division wouldn’t enable any additional transfers of wi-fi spectrum till it completes a overview of Canada’s spectrum switch framework.
Rogers first introduced its deal to purchase Shaw in March 2021 and the closing deadline has been pushed again quite a few instances since then. The deal was anticipated to shut by April 7.
“Rogers and Shaw have been connecting Canadians for more than 50 years, and we’re thrilled to come together as one company to build on a shared legacy of investment, innovation, and entrepreneurship,” mentioned Rogers chairman Edward Rogers in a press launch.
This report by The Canadian Press was first printed April 3, 2023
