Rogers Purchase of Shaw is Approved by Government
In the "Canadian Top Mobile Network Operators" we mentioned Rogers was trying to buy Shaw, now the purchase is approved by Canadian government.
2023 March 31, the two major Canadian telecom companies Rogers Communications Inc. and Shaw Communications Inc., received approval from Ottawa for their $26-billion takeover deal.
The purchase includes the following main points
- Rogers Communications Inc. acquires Shaw Communications Inc. for C$26 billion. It is the largest telecommunications deal in Canadian history.
- The transaction closes on April 7, 2023, following more than two years of regulatory approval.
- Canadian Industry Minister François-Philippe Champagne has attached 21 legally-mandated conditions to the deal aimed at increasing competition and lowering telephone and Internet costs.
- Conditions include Rogers creating 3,000 new jobs in western Canada, investing C$6.5 billion to expand 5G coverage and network service.
- Rogers has to transfer Shaw's Freedom Mobile wireless license to Quebecor Inc.'s Videotron.
As a result, as one of the conditions of being approved: Freedom Mobile was not acquired by Rogers, but was acquired by Videotron. Freedom Mobile is Shaw's wireless business, part of its consumer business.
According to Shaw's 2022 annual report, the consumer business accounted for 67% of Shaw's total revenue, with wireless accounting for 36% of consumer business revenue, Freedom Mobile accounts for roughly 24% of Shaw's total revenue.