Antitrust agency seeks to block Rogers-Shaw $16 billion merger
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Canada’s antitrust company is in search of to dam Rogers Communications Inc’s $16 billion deal to purchase Shaw Communications Inc on the grounds that it will result in much less competitors within the wi-fi business.
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Rogers provided to purchase Shaw for C$40.50 per share final yr to create the nation’s second-largest telecom firm and tackle rivals Telus Corp and BCE Inc in a extremely aggressive market.
“Eliminating Shaw would take away a robust, unbiased competitor in Canada’s wi-fi market – one which has pushed down costs, made information extra accessible, and provided modern providers to its clients,” Commissioner of Competitors Matthew Boswell mentioned on Monday.
The information despatched shares of Shaw Communications tumbling 7.7% in afternoon buying and selling, whereas these of Rogers fell 3.5%.
Each, Rogers and Shaw didn’t instantly reply to Reuters’ requests for touch upon the Competitors Bureau’s assertion.
The 2 firms have provided to handle competitors considerations by divesting Shaw’s Freedom Cell enterprise, the nation’s fourth-largest wi-fi provider.
“Though there may be nonetheless a robust likelihood that the transaction can in the end get executed, one has to concede that deal danger has risen meaningfully,” Canaccord Genuity analyst Aravinda Galappatthige mentioned.
The businesses have prolonged the closure of the deal by a month to July 31.
A report within the Globe and Mail newspaper on Friday mentioned Rogers had requested telecom agency Quebecor Inc to affix a bid for Shaw’s Freedom Cell.
