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Rogers, Shaw merger moves a step closer

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Rogers Communications’ takeover of Shaw Communications has moved a step closer after the Competition Bureau’s effort to overturn the deal was dismissed by the Federal Court of Appeal.

David Stratas, the Court of Appeal Justice said that the arguments made by the bureau did not meet the threshold of an overriding error going to the core of the case.

He added that many of the points made were “without merit”.

Earlier this month, the deal was approved by the Competition Tribunal after it dismissed concerns that alleged that the deal should not go ahead.

The Competition Bureau repeatedly stated that there were four key legal errors that focused on how the proposed sale of Shaw’s Freedom Mobile to the Quebecor-owned Videotron factored into the tribunal’s decision.

It added that a merged Rogers and Shaw would not have a viable competitor in Quebecor.

Rogers unsurprisingly welcomed the decision in a joint statement with Shaw and Quebecor Inc: “We welcome this clear, unequivocal, and unanimous decision by the Federal Court of Appeal.

“We continue to work with Innovation, Science and Economic Development Canada to secure the final approval needed to close the pro-competitive transactions and create a stronger fourth wireless carrier in Canada and a more formidable wireline competitor.”

The deal has faced opposition from politicians and rival telecom companies and still needs approval from the Canadian government.