Canada’s Commissioner of Competition plans to oppose Rogers, Shaw $16 billion merger

(Reuters) – Canada’s Commissioner of Competitors intends to oppose Rogers Communications Inc’s proposed C$20 billion ($16 billion) merger with Shaw Communications Inc, the businesses stated in an announcement early Saturday.

The Commissioner of Competitors notified the businesses on Friday afternoon of its intention to file functions to the Competitors Tribunal opposing the merger.

The businesses have proposed full divesture of Shaw’s wi-fi enterprise, Freedom Cellular, to deal with considerations concerning the potential affect of the merger deal on Canada’s aggressive wi-fi market.

“Rogers and Shaw are engaged in a course of to promote Freedom Cellular, with a view to addressing considerations raised by the Commissioner of Competitors and ISED,” the businesses stated within the assertion, including that they continue to be dedicated to the merger.

Rogers introduced final 12 months that it was shopping for Shaw in a deal that might create Canada’s second-largest mobile and cable operator, nonetheless, traders and analysts believed that regulatory dangers had been imminent.

In the meantime, the Globe and Mail reported on Friday that Rogers has requested telecom firm Quebecor Inc to hitch a bid for Shaw’s Freedom Cellular.

Rogers declined to touch upon the Globe and Mail report.

($1 = 1.2905 Canadian {dollars})

(Reporting by Shivam Patel in Bengaluru; Enhancing by William Mallard and Michael Perry)