Agency seeks more time to probe Rogers’ planned sale of Freedom Mobile
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OTTAWA — Canada’s competitors bureau stated on Friday it wants extra time to analyze the proposed sale of Shaw Communications Inc’s Freedom Cellular to Quebecor Inc.
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Details about the sale of Freedom that the bureau presently has doesn’t handle antitrust points posed by Rogers Communications Inc’s C$20 billion ($15.5 billion) acquisition of Shaw, the competitors watchdog stated in an announcement.
Matthew Boswell, Commissioner of Competitors, Canada, stated in a court docket submitting that the bureau is “searching for solely a restricted extension” within the spirit of expediting its utility within the competitors tribunal. It has requested at the very least six weeks extension to all the listening to.
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It was unclear whether or not the tribunal would settle for the competitors bureau’s request. The tribunal didn’t reply to a request for remark.
The antitrust bureau has blocked Rogers’ proposed takeover of Shaw arguing it will reduce competitors in a rustic the place customers pay among the many highest telecoms payments on the planet. The deal, introduced in March 2021, is because of expire this month, although each Rogers and Shaw can agree to increase the closure date, in keeping with firm filings.
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Rogers has provided to promote Freedom Cellular as a concession, however the competitors bureau stated that it doesn’t presently have enough data and “first hand proof” about Quebecor’s unit Videotron’s expertise of competing in Canada’s key provinces and the way it plans to compete with out the assistance of Rogers.
The bureau stated it is usually requesting Canada’s competitors tribunal to query Videotron over the buyout of Freedom Cellular, for the reason that firm didn’t display the way it plans to uphold competitors in Canada.
The events failed to succeed in an answer throughout this month’s mediation, and talks are anticipated to proceed subsequent month, earlier than a proper listening to of the case begins within the tribunal in November. For a narrative on how the authorized battle will play out:
Shaw shares briefly turned adverse on the information, however had been buying and selling up 0.6% at C$34.65, a 14.4% low cost to Rogers supply worth reflecting the deal uncertainty. Rogers shares had been up 0.3%.
