Canada’s antitrust regulator plans to block Rogers $16B takeover of Shaw (NYSE:SJR)
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Canada’s antitrust regulator informed Rogers Communications (NYSE:RCI) and Shaw Communications (NYSE:SJR) of its intention to oppose the $16 billion transaction.
Rogers (RCI) and Shaw explained they remain dedicated to the deal, according to a joint statement Saturday. Rogers and Shaw prepare to oppose the application to stop the offer created by the Commissioner of Competition, while continuing to “interact constructively” with the Competition Bureau.
The businesses have been hoping to cure the regulator’s issues by proposing the complete sale of Shaw’s wireless small business, Liberty Cell. Globalive Cash made available C$3.75 billion to buy Flexibility Cellular from Shaw (SJR), the Globe and Mail noted in March.
The Canadian antitrust opposition comes right after The Canadian Radio-television and Telecommunications Commission agreed to permit the blend in March.
Shaw and Rogers agreed to prolong the outside the house day for the transaction until finally July 31 and the providers will will proceed to look for approval of the Transaction from the Ministry of Innovation, Science and Financial Growth.
Acceptance from Canada’s federal innovation office might also verify a complicated task as Innovation, Science and Sector Minister François-Philippe Champagne indicated in reviews in March.
“The wholesale transfer of Shaw’s wi-fi licenses to Rogers is fundamentally incompatible with our government’s policies for spectrum and mobile support competitors, and I will merely not permit it,” Champagne mentioned at the time.
Rogers (RCI) announced its arrangement to purchase Shaw (SJR) in March of last yr.