Canada’s antitrust regulator plans to block Rogers $16B takeover of Shaw (NYSE:SJR)
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Canada’s antitrust regulator educated Rogers Communications (NYSE:RCI) and Shaw Communications (NYSE:SJR) of its intention to oppose the $16 billion transaction.
Rogers (RCI) and Shaw stated they remain fully commited to the deal, according to a joint statement Saturday. Rogers and Shaw approach to oppose the application to prevent the offer made by the Commissioner of Competition, although continuing to “interact constructively” with the Opposition Bureau.
The businesses have been attempting to solution the regulator’s issues by proposing the full sale of Shaw’s wi-fi company, Independence Mobile. Globalive Funds available C$3.75 billion to obtain Independence Mobile from Shaw (SJR), the World and Mail claimed in March.
The Canadian antitrust opposition comes following The Canadian Radio-tv and Telecommunications Commission agreed to permit the combination in March.
Shaw and Rogers agreed to extend the outside date for the transaction until July 31 and the firms will will continue on to search for acceptance of the Transaction from the Ministry of Innovation, Science and Economic Improvement.
Approval from Canada’s federal innovation section could also demonstrate a hard activity as Innovation, Science and Field Minister François-Philippe Champagne indicated in reviews in March.
“The wholesale transfer of Shaw’s wireless licenses to Rogers is essentially incompatible with our government’s procedures for spectrum and mobile service opposition, and I will just not allow it,” Champagne reported at the time.
Rogers (RCI) introduced its settlement to obtain Shaw (SJR) in March of last year.