Rogers, Shaw agree not to close $16B transaction until antitrust issues are resolved

Low angle view of modern office building with glass facade and comapny logo of Rogers Communications Inc. on top on sunny day in autumn with clouds in the sky.

Timon Schneider/iStock Editorial via Getty Images

Rogers Communications (NYSE:RCI) and Shaw Communications (NYSE:SJR) agreed to put their deal on hold as the telecom companies attempt to come to resolution with a Canadian antitrust regulator.

Rogers (RCI), which agreed to acquire Shaw (SJR) for $16 billion last March, agreed to not proceed with the deal until either a negotiated settlement is agreed with Canada’s Competition Bureau or the Competition Tribunal has ruled on the matter, according to a statement.

Earlier this month Canada's antitrust regulator informed Rogers (RCI) and Shaw (SJR) of its intention to oppose the transaction. Rogers and Shaw are engaged in a process to fully divest Shaw’s wireless business as part of their proposed merger in an effort to address the agency's antitrust concerns.

If a Tribunal hearing is ultimately required to address the Commissioner’s application to prevent the deal, Rogers (RCI) and Shaw (SJR) said they intend to oppose it. An expedited schedule of that application is expected to be set soon.

Earlier this month, Bell (BCE), Telus (TU) pushed to block Quebecor (OTCPK:QBCRF) purchase of Shaw's wireless unit.

Recommended For You

Comments (2)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.