Rogers may need to sell all or part of Shaw\u0027s wireless business to get regulators to give their blessing for the acquisition
Rogers, Canada’s largest wireless and cable firm, may need to sell all or part of Shaw’s wireless business to get regulators to give their blessing for the acquisition of Calgary-based Shaw. The companies have said they want to close the deal by June 30.
Rogers may try to have a buyer lined up before that date in order to satisfy antitrust regulators, the person said, asking not to be identified because the matter is still private. Rogers has more than 11 million wireless customer accounts; Shaw has more than two million, making it the fourth player in the Canadian market.
The wireless unit is considered the biggest antitrust concern in the deal, as there’s no geographic overlap between Rogers and Shaw’s cable networks. If the transaction were to go ahead without the divestment of Shaw’s Freedom Mobile division, consumers in major cities including Vancouver and Toronto would have only three mobile-phone providers to choose from.Article content
Shaw shares rose to a record closing level of $38.59 on March 10 as traders bet on the high likelihood of success for Rogers’s $40.50-per-share bid.Three large companies — Rogers, BCE Inc. and Telus Corp. — dominate the Canadian wireless industry. The federal government has tried to create more competition by allocating wireless licenses that only new players can buy, with the right to veto any proposed sale or transfer of licenses to the big three.
In addition, Canada’s Competition Bureau must give its blessing for the deal and can order the companies to make changes or divest assets if needed to preserve competition.
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