Rogers, Shaw and the Commissioner of Competition seek to resolve injunction
The interim injunction filed by Canada's Commissioner of Competition on the upcoming Rogers and Shaw merger, has been resolved.
The resolution, which both parties have agreed to, stipulates that Rogers Communications (Rogers) and Shaw Communications (Shaw) will not proceed with closing their proposed merger until either a negotiated settlement is agreed with the Commissioner or the Competition Tribunal (the Tribunal) has ruled on the matter.
As a result, the Tribunal does not need to hear the Commissioner’s application for an interim injunction.
Announced in March 2021, Rogers and Shaw are in the process of a $26bn acquisition that will see Shaw fully divest its wireless business to Rogers. The deal prices Shaw’s shares at approximately $40.50 per share, a premium for Shaw’s shareholders, and the $26 billion price tag includes $6 billion of Shaw’s debts.
Despite market objections from the likes of OpenMedia and ACORN Canada, Democratic Socialists of Canada, Justice Internationale, Leadnow, North99 and The Fees Are Too Damn High Party, as well as other groups, Rogers and Shaw has maintained that the Transaction is in the best interests of Canadian consumers, businesses and the Canadian economy, and that a settlement is the best path forward.
Should the deal go to a Tribunal hearing to address the Commissioner’s application, Rogers and Shaw have confirmed that they intend to oppose it.
As part of the transaction, Rogers and Shaw have committed to investing $2.5 billion to build 5G networks across Western Canada over the next five years; creating a $1 billion Rogers Rural and Indigenous Connectivity Fund; spending an additional $3 billion to support further network, services, and technology investments; creating up to 3,000 new jobs in Western Canada; and sxtending Rogers Connected for Success program across Western Canada.
The deal has already been approved by the shareholders of Shaw and the Court of Queen’s Bench of Alberta, and the Canadian Radio-television and Telecommunications Commission (CRTC) has approved Rogers’ acquisition of Shaw’s broadcasting services.
It still requires the approval of the Ministry of Innovation, Science and Economic Development and as well as other standard closing conditions.