Rogers asks tribunal to scrap Canada competition bureau’s rejection of Shaw takeover

By Akash Sriram and Divya Rajagopal

(Reuters) -Rogers Communications Inc on Friday requested a tribunal to scrap Canada competitors bureau’s rejection to its C$20 billion ($15.9 billion) buy of Shaw Communications Inc, arguing the merger would create extra competitors slightly than stifle it.

Calling the opposition to the deal “unreasonable”, Rogers mentioned the bureau had did not quantify the explanations the proposed merger with Shaw would reduce competitors. It added that any alleged aggressive results had been outweighed by the “vital efficiencies the transaction will generate.”

Rogers, in a 19-page petition to the tribunal, responded to the bureau’s refusal to simply accept the divesture of Freedom cell as a part of the merger treatment. Rogers requested the tribunal to dismiss the bureau’s software to dam the deal.

In Canada, the highest three corporations – Rogers, BCE Inc and Telus Corp – account for nearly 90% of the telecom business income and shoppers paid the best cell payments on the planet in 2021, in response to a report by Rewheel, a Finnish telecom analysis agency.

The excessive wi-fi charges are a hot-button subject and the federal government has vowed to convey it down.

The competitors bureau blocked the deal and mentioned it was not satisfied Rogers’ proposal to promote Freedom cell would preserve competitors alive within the sector. Freedom is a low-cost wi-fi service supplier with about 1.7 million subscribers.

Rogers rebutted the bureau’s claims and mentioned Freedom cell by itself would stay aggressive even after its cut up from Shaw as it’s run as an impartial enterprise. It mentioned a “divested Freedom may have the identical financial incentive to compete because it had when owned by Shaw.”

The bureau argued the brand new purchaser of Freedom can be unable to broaden and deploy 5G community to convey down the wi-fi costs.

Rogers disputed the bureau’s claims that Shaw was a direct competitor to the corporate, saying its major opponents had been Bell and Telus.

This week, Rogers agreed to place the deal on maintain.

($1 = 1.2588 Canadian {dollars})

(Reporting by Akash Sriram in Bengaluru; Enhancing by Krishna Chandra Eluri)