\u0027To our knowledge, the Commission has never before been asked to approve a change of control transaction ... where the legal control of the acquirer is itself…
“The situation before the Commission is unprecedented and places the Commission and parties to the proceeding in an impossible position,” Bell said in a letter to the CRTC Monday. “To our knowledge, the Commission has never before been asked to approve a change of control transaction in circumstances where the legal control of the acquirer is itself uncertain.”
Bell warned the CRTC that the dispute over who controls Rogers could be a protracted one. “It seems that the uncertainty around control of Rogers will linger until all possible legal avenues have been exhausted by the parties,” the company said in its letter.Telus warned that could take months until the issue is resolved, and the case could ultimately wind up in the Supreme Court of Canada.
“Rogers and Shaw remain steadfastly committed to the timely receipt of the necessary regulatory approvals and closing of this transaction,” Rogers wrote. It said the company and the Rogers family “are aligned on the importance of this transaction.” The CRTC approval process will look at how the TV service divisions of Rogers and Shaw will be affected by the proposed acquisition. It’s one of three different proceedings determining whether the deal will be approved. Innovation Canada is looking at how the deal will affect spectrum assets, while the most significant review is taking place at the Competition Bureau, which will look at whether the mega-merger will substantially prevent or lessen competition in the sector.
Still, Lawford said he “can’t help but think the Competition Bureau is having the exact same problem” as the CRTC in that if the current the Rogers leadership agrees to conditions as part of approving the deal, and then that leadership changes, the new management may be able to say they never actually agreed to the conditions. The Competition Bureau will “probably have similar questions,” Lawford said.
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