Rogers, Shaw rise 3% as court rules in favor of merger (updated)
Jan. 24, 2023 4:06 PM ETRogers Communications Inc. (RCI), SJR, QBR.B:CA, QBCRF, RCI.B:CA, SJR.B:CAQBCAF, RCIAF, SJRWF, SJR.A:CA, QBR.A:CA, RCI.A:CABy: Jason Aycock, SA News Editor3 Comments
- Rogers Communications (NYSE:RCI) rose 3.1% and Shaw Communications (NYSE:SJR) jumped 3.1% in NYSE trading as a Canadian appeals court sided with the companies in their contentious merger.
- The court rejected an appeal from Canada's Competition Bureau seeking to block Rogers' C$20B acquisition bid for Shaw.
- The appeal came after Canada's Competition Tribunal said the combination could go forward, finding no competitive concerns.
- And the result comes in time for the two companies to close the deal. They had extended the outside date of their combination to Jan. 31, as well as a deal for Shaw to sell its Freedom Mobile arm to Vidéotron (QBR.B:CA).
- A three-judge panel at the appeals court issued its ruling after hearing only from lawyers from the Competition Bureau, saying they didn't need to hear from the companies.
- And it was "far from a close case," said Justice David Stratas, who cited hearing from dozens of witnesses and reviewing thousands of pages of evidence.
- Updated: The decision now largely rests in the hands of François-Philippe Champagne, Canada's Minister of Innovation, Science and Industry, who is set to grant or deny a license to transfer Shaw's Freedom spectrum to Vidéotron, and he says he will be making a "decision in due course."
- "Promoting competition and affordability in the telecom sector has been - and remains - my top priority," Champagne says.
- Rogers (RCI) and Shaw (SJR) wrapped up their NYSE trading days up 2.8% each.