Feb 17 (Reuters) – Canada’s Rogers Communications (RCIb.TO) on Friday prolonged the deadline for its C$20 billion merger with Shaw Communications (SJRb.TO) for the fourth time to March 31 as the businesses await the ultimate nod from trade minister Francois-Philippe Champagne.
The deal to create Canada’s No. 2 telecoms firm was beforehand anticipated to shut on Feb. 17 following a profitable finish to the long-drawn battle with the competitors bureau for approval.
The bureau’s greatest concern was the deal would reduce competitors in a rustic the place wi-fi payments are already among the many highest on this planet.
To deal with the problem, Rogers and Shaw agreed to promote Freedom Cellular, a wi-fi enterprise owned by Shaw, to Quebecor Inc (QBRb.TO) for C$2.85 billion ($2.11 billion). That deal is now anticipated to shut by March 31.
Champagne’s approval is required to switch spectrum licenses of Shaw’s Freedom Cellular unit to Quebecor’s Videotron. The minister has beforehand expressed assist for the deal if sure circumstances had been met.
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When approving the deal in December, Canada’s antitrust tribunal had mentioned Videotron would be capable to profitably bundle its providers at costs under what Shaw was providing.
The deal for Shaw would additionally improve the depth of competitors in Alberta and British Columbia, the place Rogers sought to strengthen its footing after the acquisition, the tribunal had added.
“As indicated beforehand, ISED will render a choice on the proposed Freedom-Quebecor spectrum licence switch sooner or later,” mentioned Innovation, Science and Financial Growth Canada, which Champagne heads.
Shares of Rogers had been up 0.2% on Friday, whereas Shaw fell 0.4% and Quebecor shed 1.7%.
“We stay shocked by not solely the size but in addition the price (over $825M) to the businesses and authorities of the regulatory evaluate course of,” Nationwide Financial institution of Canada analyst Adam Shine mentioned.
($1 = 1.3534 Canadian {dollars})
Reporting by Eva Mathews in Bengaluru; Modifying by Anil D’Silva, Devika Syamnath and Shinjini Ganguli
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