Rogers Communications IncB次元官网网址檚 $26-billion takeover of Shaw Communications Inc. cleared the final regulatory hurdle Friday, more than two years after the deal was first announced.
Federal Industry Minister Fran莽ois-Philippe Champagne approved the transfer of Shaw-owned Freedom MobileB次元官网网址檚 wireless licences to Quebecor Inc.B次元官网网址檚 B次元官网网址tron, which operates in Quebec and some border regions of Ontario., paving the way for the deal to be completed.
Rogers announced its deal to buy Shaw in March 2021 and the deadline to close the deal has been pushed back numerous times. The three companies said Friday they expected to complete the transaction by April 7.
Champagne said Ottawa has secured 21 legally enforceable commitments from Rogers and B次元官网网址tron to bolster competition in the sector and B次元官网网址渁ctually drive down prices.B次元官网网址�
Rogers and Shaw had agreed in June 2022 to sell Freedom Mobile to B次元官网网址tron for $2.85 billion in an attempt to ease competition concerns raised by the original proposal.
Champagne had stipulated that he would B次元官网网址渆xpect to seeB次元官网网址� FreedomB次元官网网址檚 wireless prices in Ontario and Western Canada lowered by about 20 per cent over, putting them in line with B次元官网网址tronB次元官网网址檚 current Quebec offerings.
In response, B次元官网网址tron said it would accept the conditions, agreeing to incorporate them in a revised deal.
On Friday, the minister said OttawaB次元官网网址檚 conditions B次元官网网址渟hould not be taken lightly.B次元官网网址� He said they would ensure a B次元官网网址渇ourth national player can go toe-to-toe with the Big Three and actually drive down prices.B次元官网网址�
The conditions include Rogers establishing a second headquarters in Calgary and adding 3,000 new jobs based in Western Canada B次元官网网址渋n the coming monthsB次元官网网址� which it must maintain for at least 10 years.
It must also spend $5.5 billion to expand 5G coverage and additional network services, as well as a further $1 billion to connect rural, remote and Indigenous communities.
B次元官网网址tron must offer plans that are at least 20 per cent lower than its competitors and spend $150 million over the next two years to upgrade Freedom MobileB次元官网网址檚 network. It is restricted from transferring any Freedom Mobile licences for a decade.
The minister also announced his department would launch a review of CanadaB次元官网网址檚 spectrum transfer framework, noting one has not been conducted in nearly a decade.
Champagne vowed to B次元官网网址渂e like a hawk on behalf of CanadiansB次元官网网址� to ensure the companies adhere to the conditions.
B次元官网网址淢ake no mistake. We will be monitoring their performance under these terms and conditions and making sure that we enforce the terms of these contracts on behalf of Canadians,B次元官网网址� he said.
Asked how he will enforce the conditions, the minister told reporters, B次元官网网址淚B次元官网网址檓 a lawyer and itB次元官网网址檚 a contract,B次元官网网址� before adding that the deal is subject to arbitration.
B次元官网网址淚 would not mess with the regulator,B次元官网网址� he said. B次元官网网址淚tB次元官网网址檚 never a good thing, not only if you have a contract with conditions, but on top of that, just think about the penalties.B次元官网网址�
If Rogers breaches its conditions, it must pay $1 billion in damages, the minister said. B次元官网网址tron would be subject to $200 million if it fails to meet its commitments.
B次元官网网址淚f Canadians do not begin to see clear and meaningful reduction in prices within a reasonable amount of time, I will have no choice but to seek further legislative and regulatory powers to drive down prices in Canada,B次元官网网址� Champagne said.
In January, the Federal Court of Appeal rejected the Competition BureauB次元官网网址檚 bid to quash the deal.
The regulator, which had argued that approving the merger would reduce competition and result in higher cellphone bills, poorer service, and fewer options for consumers, had hoped the higher court would overturn a previous ruling from the Competition Tribunal in favour of the pact.
Instead, the court sided with the tribunalB次元官网网址檚 view that B次元官网网址渢here was no substantial lessening of competitionB次元官网网址� at risk by approving the deal.
The companies had previously tried to solve the impasse with the Competition Bureau via mediation through last summer and fall, but that process was unsuccessful. Rogers and Shaw had agreed not to close their deal until either reaching a negotiated agreement with the regulator or a ruling from the Competition Tribunal.
Clearing another regulatory obstacle, the Canadian Radio-television and Telecommunications Commission (CRTC) approved RogersB次元官网网址� acquisition of ShawB次元官网网址檚 broadcasting services in March 2022 subject to certain conditions.
That included a requirement for Rogers to contribute $27.2 million to various initiatives and funds, five times what the company had originally proposed.
The CRTC, which was only tasked with assessing broadcasting elements of the transaction, said 80 per cent of that sum must be directed to the Canada Media Fund, the Independent Local B次元官网网址 Fund and certified independent production funds.
Rogers must also create an Indigenous news team with journalists in all provinces where the company provides news content to deliver stories to First Nations, M茅tis and Inuit communities.
As part of the agreement, Rogers will acquire 16 cable services based in Western Canada, a national satellite television service and other broadcast and television services.
Earlier this month, Champagne told reporters B次元官网网址淚B次元官网网址檓 the holdupB次元官网网址� when asked about the agreementB次元官网网址檚 constantly shifting deadline.
B次元官网网址淢y mission has been that this undertaking is to drive down prices. ThatB次元官网网址檚 the only thing that was the driving force behind it. ThatB次元官网网址檚 why it took so long,B次元官网网址� he said Friday.
He told reporters that the Liberal government has B次元官网网址渃hanged the gameB次元官网网址� for telecommunications companies in Canada, but promised B次元官网网址渢his is not the end of it.B次元官网网址�
B次元官网网址淚f we donB次元官网网址檛 see prices coming down B次元官网网址� IB次元官网网址檒l be seeking additional power to make sure that we drive down prices and at that time, everything is on the table,B次元官网网址� he said.
B次元官网网址擲ammy Hudes, The Canadian Press
READ MORE:
