Quebecor to buy Shaw’s Freedom Mobile for $2.19 billion

(Corrects U.S. forex determine in headline)

(Reuters) -Quebecor Inc has agreed with Rogers Communications Inc and Shaw Communications Inc to purchase Freedom Cellular for an enterprise worth of C$2.85 billion ($2.19 billion), the businesses mentioned on Friday.

The deal comes after the antitrust regulator mentioned it opposes Rogers’ plan to buy Shaw. It covers all of Freedom’s branded wi-fi and Web clients, infrastructure, spectrum and retail websites, the businesses mentioned in an announcement.

Rogers made a C$20 billion bid for Calgary-based Shaw and has additionally supplied to promote Shaw’s Freedom cellular unit to allay competitors considerations, as a part of the deal.

The Competitors Bureau mentioned the sale would weaken Freedom’s operations, lowering “aggressive self-discipline” amongst nationwide carriers and result in a switch of wealth from low and center earnings teams to the rich households of Rogers-Shaw.

“The events strongly imagine the settlement successfully addresses the considerations … concerning viable and sustainable wi-fi competitors in Canada,” they mentioned within the assertion, referring to the reservations of the competitors commissioner of and trade minister.

The businesses may even present transport providers and roaming providers to Quebecor as a part of the deal.

“We look ahead to securing the excellent regulatory approvals for our merger with Shaw in order that we will ship vital long-term advantages to Canadian customers, companies and the financial system,” mentioned Rogers’ Chief Govt Tony Staffieri.

Canadian regulation permits approval of mergers that hurt competitors if the businesses can show the merger brings effectivity to the financial system.

($1=C$1.3026)

(Reporting by Jahnavi Nidumolu in Bengaluru; Enhancing by Clarence Fernandez)