Shaw Communications Inc. told Canada’s Competition Tribunal that it couldn’t compete effectively without merging with Rogers Communications Inc.
“This isn’t the first time that we considered consolidation within the sector,” Trevor English, Shaw’s chief financial officer, said Monday in testimony. “This has been part of our process that’s been going on for many years, and we just didn’t see a viable path forward as a standalone company.”Since Shaw entered the wireless business by acquiring Wind Mobile, later renamed Freedom Mobile, the company has been struggling to keep up with its main competitor, Telus Corp.
That testimony is a central argument for Shaw, which is trying to gain regulatory approval to be taken over by Rogers in one of the biggest corporate deal in Canada’s history. The two companies also have a side deal with Quebecor Inc. to sell Freedom Mobile in an attempt to appease regulators, who have concerns over wireless competition.
The Freedom deal would double the number of Videotron subscribers to nearly 3.5 million, and the bigger wireless operations would be a significant vehicle for growth for the company in markets outside of Quebec at a time when the traditional cable business is in decline, he said.
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