Canada: Rogers Gets Green Light To Acquire Shaw Communications

Canadian regulators approved Rogers Communications Inc.’s purchase of the cable assets of Shaw Communications Inc., removing another hurdle to the companies’ $16 billion deal, reports Bloomberg.

The decision by the Canadian Radio-television and Telecommunications Commission is the first of three government approvals needed for Rogers to complete its takeover of Shaw. The deal still needs to be cleared by the country’s antitrust body and by the federal government, which has the final say on deals involving wireless spectrum.

The regulator attached a number of conditions to the cable deal, including that Rogers contribute C$27.2 million ($21.7 million) to several media funds and that it employ a higher number of journalists at its Citytv stations across the country and produce additional news specials.

The antitrust review is expected to be the most difficult, and Rogers has already opened a data room and begun talks with potential buyers of Shaw’s wireless division in the expectation that it won’t be allowed to keep it. The companies have said they want to close the deal by June 30.

In separate statements Thursday evening Rogers and Shaw welcomed the CRTC approval.

“This approval is an important milestone and brings us one step closer to completing our transformational transaction with Shaw,” said Tony Staffieri, Rogers’ president and chief executive, in a statement.

“Together, Rogers and Shaw will accelerate investment in 5G and cable networks across Canada, offer consumers and businesses more choice and competition, and connect rural and remote communities faster than either company could alone,” Staffieri said.

Commenting on the ruling, Brad Shaw, Executive Chair and CEO of Shaw said, “We appreciate the CRTC’s thoughtful inquiry and remain committed to working with government and regulators to achieve a successful completion of our proposed transaction with Rogers.”

“Together, with Rogers, we all look forward to bringing to Canadians the important benefits of the combined company – including access to high-quality, next-generation networks, increased competition, and greater connectivity to rural, remote and Indigenous communities throughout Western Canada,” he added.