Competition Tribunal clears the way for Rogers-Shaw merger to go ahead | 24CA News

The Competition Tribunal has dismissed an software from Canada’s competitors watchdog in search of to dam Rogers Communications’ proposed $26-billion buy of Shaw Communications, clearing a path for the deal to undergo.

It nonetheless requires approval from Innovation, Science and Economic Development Canada.

In a abstract of its determination launched Thursday, the tribunal says the merger of the 2 telecommunications firms wouldn’t end in materially greater costs.

The determination says the deal, which incorporates the sale of Shaw-owned Freedom Mobile to Quebecor-owned Videotron, would not going stop or reduce competitors considerably.

Quebecor agreed to purchase Freedom Mobile in a $2.85-billion deal earlier this 12 months.

More detailed determination to return

Concerns that Bell and Telus — the closest rivals to Rogers in Canada’s telecom market — can be unable to compete with the mixed firm have been additionally dismissed.

“The tribunal has also determined that the strengthening of Rogers’ position in Alberta and British Columbia, combined with the very significant competitive initiatives that Telus and Bell have been pursuing since the merger was announced, will also likely contribute to an increased intensity of competition in those markets,” the choice reads.

It says a extra detailed determination might be launched within the subsequent two days.

Matthew Boswell, the commissioner of competitors for the federal Competition Bureau, issued a press release Thursday night, saying, “I am very disappointed that the tribunal is dismissing our application to block the merger between Rogers and Shaw. We are carefully considering our next steps.”

The Competition Tribunal held 4 weeks of hearings to debate issues concerning the proposed deal earlier this 12 months.

Throughout the listening to, the Competition Bureau argued that the merger would reduce competitors within the telecom market, set off greater costs and result in poor service.

Rogers and Shaw argued that the deal would improve competitors and be higher for shoppers.

Earlier this 12 months, Industry Minister François-Philippe Champagne mentioned he wouldn’t enable Rogers to accumulate all of Shaw’s wi-fi licences, suggesting the ultimate approval for the merger required concessions, together with the sale of Freedom Mobile.

The deal’s present cut-off date of Dec. 31 is simply days away, though the events have the choice to increase it via the tip of January if wanted.