Rogers-Shaw say mediation fails to resolve regulator’s objections

Article content material

TORONTO — Talks between the Competitors Bureau and Rogers Communications Inc. and Shaw Communications Inc. this week did not resolve the regulator’s objections to their merger, the businesses mentioned Wednesday.

Article content material

Carleton College professor Dwayne Winseck mentioned the consequence suggests the proposed sale of wi-fi provider Freedom Cell to Quebecor Inc. is just not sufficient to ease the regulator’s issues concerning the proposed merger, particularly for the reason that Shaw Cell enterprise could be retained.

“It’s by no means clear if this deal will go muster with the Competitors Bureau full-stop,” Winseck mentioned.

Article content material

“The Competitors Bureau has laid its case towards the proposed merger on the grounds that the entire thing is deeply problematic … and simply chopping off bits and items of it are most likely not going to be adequate.”

Rogers and Shaw met with the competitors watchdog on Monday and Tuesday as a part of a mediation course of. The regulator has been attempting to dam the merger, arguing that it might lead to much less alternative for Canadians and result in increased payments for shoppers.

Article content material

The Competitors Bureau has mentioned that the sale of Freedom wouldn’t change the rising competitors Shaw Cell would ship in Alberta and British Columbia and would in the end make it a weaker competitor.

Of their assertion, Rogers and Shaw mentioned the assessment technique of their deal would proceed as beforehand disclosed, including that they’re open to persevering with talks with the regulator at any time.

The businesses mentioned they intend to proceed to work to spotlight the advantages of their merger, together with the proposed sale of Freedom to Quebecor Inc.

Morningstar analyst Matthew Dolgin didn’t have excessive hopes for mediation, however nonetheless considered the dearth of a decision as a damaging for the destiny of the deal because it was one other avenue that would have moved it ahead.

Article content material

“Nevertheless, I did and nonetheless do have increased hopes that the 2 sides can attain an settlement amongst themselves, and in the event that they don’t and the case goes earlier than the Competitors Tribunal, I believe Rogers and Shaw have a powerful case of their favour,” he mentioned.

The Rogers-Shaw transaction already has approval from shareholders and the Canadian Radio-television and Telecommunications Fee, however stays topic to assessment by the Competitors Bureau and the Minister of Innovation, Science and Financial Growth.

On Monday, Alberta filed a discover stating its intention to intervene in Competitors Tribunal proceedings relating to the deal.