Shaw Communications Inc's shares rose as much as 10% on Wednesday after the government's intervention raised hopes that Canada is likely to approve Rogers Communications' $14.7 billion bid for Shaw, reports Reuters.
Analysts said they expected the deal to close before year end as the terms put forward by Industry Minister Francois Champagne late on Tuesday brings Canada's anti-trust authority and Rogers-Shaw a step closer to a settlement.
However, Canada's anti-trust authority still has objections to the deal.
"We remain firm in our decision to challenge this proposed merger to protect the public interest," a competition bureau spokesperson said in an email. The bureau declined to comment further and said the matter will be determined by courts.
Rogers' launched its bid to buy Shaw in March 2021, but the competition bureau blocked it, saying it would lessen competition in a market that has among the highest wireless prices in the world.
"It is likely that we see a settlement coming through during the mediation process scheduled for later this week," said Aaron Glick, an analyst with New York-based Cowen. Since the competition bureau sits under the minister, it is a signal to the bureau to settle, he said.
Rogers shares closed up 5.8%, while Shaw ended up 7.2%.
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