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Minister rejects Rogers-Shaw deal, sets conditions for Freedom Mobile sale

Industry Minister François-Philippe Champagne said he will not approve the proposed deal between Rogers Communications Inc. and Shaw Communications Inc., though he left the door open to a revised agreement.
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Minister of Innovation, Science and Industry Francois-Philippe Champagne stands during question period in the House of Commons on Parliament Hill in Ottawa, on Tuesday, Oct. 25, 2022. Champagne says he will not approve the proposed deal between Rogers Communications Inc. and Shaw Communications Inc., though he left the door open to a revised deal. THE CANADIAN PRESS/Sean Kilpatrick

Industry Minister François-Philippe Champagne said he will not approve the proposed deal between Rogers Communications Inc. and Shaw Communications Inc., though he left the door open to a revised agreement.

The $26-billion proposed merger would have meant the wholesale transfer of wireless spectrum licences from Shaw to Rogers, which requires ChampagneBԪַs approval.

BԪַToday, I officially denied that request,BԪַ he said Tuesday evening. BԪַMy decision formally closes that chapter of the original proposed transaction.BԪַ

ShawBԪַs ownership of Freedom Mobile has widely been seen as the main obstacle to the dealBԪַs approval, and Montreal-based BԪַtron earlier this year agreed to buy it for $2.85 billion.

But Champagne says before he would approve the BԪַtron deal, he needs two specific concessions.

He says BԪַtron would have to agree to keep the Freedom wireless licences for at least 10 years.

BԪַWe donBԪַt want someone to flip these licences, we want them to be in it for the long term,BԪַ he said.

Secondly, he said he would BԪַexpect to seeBԪַ wireless prices in Ontario and Western Canada lowered by about 20 per cent, putting them in line with BԪַtronBԪַs current Quebec offerings.

Champagne did not make clear whether a successful sale of Freedom Mobile would mean the Rogers-Shaw deal might still be approved. He said his conditions for FreedomBԪַs licence transfer were clear.

BԪַThere is a chapter that is closed BԪַ Shaw-Rogers, thatBԪַs closed. ThereBԪַs a new chapter opening.BԪַ

As well as ChampagneBԪַs approval, the Rogers-Shaw deal required a green light from the Competition Commissioner and the CRTC.

The Canadian Radio-television and Telecommunications Commission offered its conditional approval for the broadcasting portion of the deal in March.

A mediation is scheduled for later this week between the Competition Commissioner and Rogers and Shaw. The Competition Bureau is attempting to block the merger, saying that the sale of Freedom Mobile does not go far enough to eliminate its concerns that telecom bills would increase amid reduced competition.

ChampagneBԪַs approval is required for any spectrum licence transfer.





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