Rogers Communications Inc. (TSX: RCI.A and RCI.B; NYSE: RCI) and Shaw Communications Inc. (TSX: SJR.B, NYSE: SJR, and TSXV: SJR.A) say that meetings with Canada's Commissioner of Competition on July 4 and July 5, 2022, failed to assuage the commissioner’s concerns about their proposed merger.
The review process will continue and the two companies point out that they are free to reengage with the commissioner again regarding the proposed CAN$26 billion ($20.85 billion) transaction; the price includes approximately CAN$6 billion ($4.8 billion) of Shaw debt.
The cable MSOs revealed in May that Commissioner of Competition Matthew Boswell planned to file objections to the merger on anti-competition grounds, with concerns about competition in the wireless space foremost in his mind.
The objections arose despite Rogers’ plans to sell Shaw’s Freedom Mobile assets; an agreement to sell Freedom Mobile to Canadian wireless services provider Quebecor at an enterprise value of CAN$2.85 billion ($2.20 billion) was reached last month.
“Rogers and Shaw intend to continue to work constructively with the Commissioner to highlight the many benefits of the merger to all Canadians, including maintaining a strong and sustainable fourth wireless carrier across Canada through the proposed divestiture of Freedom Wireless to Quebecor Inc.,” the companies said in a statement.