This post was originally published on this site
https://i-invdn-com.investing.com/trkd-images/LYNXMPEJ1G0H9_L.jpg
The Friday announcement from Rogers (NYSE:ROG) and Shaw comes after the companies set a Feb. 17 deadline last month as a long-drawn battle for approval with the country’s competition bureau came to an end.
The antitrust tribunal approved the deal in December and a Canadian court later dismissed the competition bureau’s efforts to overturn the approval.
The deal to create Canada’s No. 2 telecoms company had triggered concerns of lessening competition in a country where wireless bills are already among the highest in the world.
To alleviate the antitrust issues, Rogers-Shaw agreed to sell Freedom Mobile, a wireless business owned by Shaw, to Quebecor Inc. The C$2.85 billion ($2.11 billion) sale is now expected to close by March 31, the companies said.
Champagne, whose approval is needed for the transfer of spectrum licenses held by Shaw’s Freedom Mobile unit to Quebecor’s Videotron, has previously indicated support for the deal if certain conditions were met.
Innovation, Science and Economic Development Canada, which Champagne heads, did not immediately respond to a Reuters request for comment.
When the antitrust tribunal approved the deal, it had said that Videotron would be able to profitably bundle wireless and wireline services at prices below what Shaw was offering.
The Rogers-Shaw deal would also increase the intensity of competition in Alberta and British Columbia, where it would build a stronghold post the acquisition, it had added.
“We remain surprised by not only the length but also the cost (over $825M) to the companies and government of the regulatory review process,” National Bank of Canada (OTC:NTIOF) analyst Adam Shine said.
Shares of Rogers were up 0.2% on Friday morning, while Shaw fell 0.4% and Quebecor shed 1.7%.
Separately, Shaw on Friday announced a monthly dividend and suspended its dividend reinvestment plan.
($1 = 1.3534 Canadian dollars)
