Rogers agrees with Canada's competition bureau to put Shaw merger on hold
Reuters
Published May 30, 2022 05:30PM ET
Updated May 30, 2022 06:15PM ET
TORONTO (Reuters) -Rogers Communications Inc on Monday said it will not proceed to close its proposed C$20 billion ($15.8 billion) purchase of Shaw Communications (NYSE:SJR) Inc until it reaches an deal with the competition bureau or the competition tribunal gives its verdict.
Rogers (NYSE:ROG) also signaled that it is open for a settlement with the bureau but said it does not agree with the bureau's conclusions for rejecting the deal and will contest the ruling.
"Today's agreement with the Commissioner allows the parties to focus on addressing the Commissioner’s concerns with the Transaction in order to reach a settlement," said Rogers spokesperson in a statement.
Rogers also agreed not enforce any agreements that are connected with the transaction on the grounds that such a move would "limit the operation, maintenance, enhancement or expansion of the Shaw Wireless Services business."
Canada's competition bureau has blocked the deal and approached the tribunal to stop merger on the grounds that it would lessen competition in the telecom sector.
Rogers was expected to file a response to the bureau's challenge by Tuesday. Monday's announcement will provide Rogers more time to explore a settlement with the bureau, including a potential concessions, according to legal experts who did not wish to be quoted due to the sensitivity of the issue.
"Vigorous competition is essential for Canadians to access affordable, high quality wireless services. I’m pleased this case can now move quickly towards a hearing before the tribunal, said Matthew Boswell, commissioner of competition.
($1 = 1.2655 Canadian dollars)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.