Rogers Communications (RCI) and Shaw Communications (SJR) have agreed to enter into
mediation with the federal Competition Bureau regarding their proposed $26 billion merger.
The first mediation sessions are scheduled to take place July 4 and 5, according to the
Competition Tribunal.
The mediation process comes after Rogers said it would sell Shaw-owned Freedom Mobile to
Quebecor (QBR) for $2.85 billion to ease the Competition Bureau's concerns about the merger
between Rogers and Shaw, two of Canada’s biggest telecommunications companies.
To date, the Competition Bureau has been opposed to the merger of Rogers and Shaw,
claiming that it will result in less competition in the telecommunications sector and lead to higher
rates for Canadians.
Rogers, Shaw, and Quebecor argue that the Freedom Mobile deal ensures that a “strong and
sustainable” fourth wireless provider remains in the Canadian marketplace.
The Rogers and Shaw merger has already received approval from shareholders and the
country’s broadcast regulator, the Canadian Radio-television and Telecommunications
Commission (CRTC), but still needs approval from the Competition Bureau and the Minister of
Innovation, Science and Economic Development.
Rogers’ stock is up 3% year to date at $62.43 per share. Shaw Communications stock has
inched 0.13% higher this year to $38.25 a share.
