Rogers Communications Looking For Dismissal Of Anti-Trust Suit

Rogers Communications Inc. asked Canada’s merger court to dismiss the antitrust suit against its $16 billion takeover of Shaw Communications Inc., saying there’s “no basis” to block the deal because it’s willing to sell Shaw’s wireless division.

Bloomberg reports Toronto-based Rogers has been trying to acquire Shaw for C$40.50 a share in what would be one of the largest mergers in Canadian history. Matthew Boswell, Canada’s commissioner of competition, has sued to try to block it, arguing that it will weaken competition in Canada’s wireless industry, where Rogers and two other companies already control 87% of the market.

The company has found buyers for Shaw’s Freedom Mobile division, but Boswell has argued that’s an inadequate solution to maintain competition.

“The Commissioner’s assertion that the transaction would substantially lessen or prevent competition even with the divestiture of Freedom is wrong,” Rogers said in a filing to Canada’s Competition Tribunal. “It is premised, in large part, on the claim that Freedom’s competitiveness is dependent on ‘leveraging’ Shaw’s wireline assets.”

“That claim is not grounded in technical or commercial reality and ignores that Freedom was a stand-alone business when Shaw acquired it and has been operated as such ever since,” the filing said.

The antitrust agency filed the case to block the proposed acquisition last month, saying it’s worried that consumers “are likely to pay higher prices” after the deal.

Earlier this week, the two companies agreed not to close their deal until antitrust problems are dealt with and said they’re working to negotiate a solution to satisfy regulators’ concerns.