Rogers Communications Inc91裸聊视频檚 $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 Mobile91裸聊视频檚 wireless licences to Quebecor Inc.91裸聊视频檚 Videotron, 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 Videotron to bolster competition in the sector and 91裸聊视频渁ctually drive down prices.91裸聊视频�
Rogers and Shaw had agreed in June 2022 to sell Freedom Mobile to Videotron for $2.85 billion in an attempt to ease competition concerns raised by the original proposal.
Champagne had stipulated that he would 91裸聊视频渆xpect to see91裸聊视频� Freedom91裸聊视频檚 wireless prices in Ontario and Western Canada lowered by about 20 per cent over, putting them in line with Videotron91裸聊视频檚 current Quebec offerings.
In response, Videotron said it would accept the conditions, agreeing to incorporate them in a revised deal.
On Friday, the minister said Ottawa91裸聊视频檚 conditions 91裸聊视频渟hould not be taken lightly.91裸聊视频� He said they would ensure a 91裸聊视频渇ourth national player can go toe-to-toe with the Big Three and actually drive down prices.91裸聊视频�
The conditions include Rogers establishing a second headquarters in Calgary and adding 3,000 new jobs based in Western Canada 91裸聊视频渋n the coming months91裸聊视频� 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.
Videotron 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 Mobile91裸聊视频檚 network. It is restricted from transferring any Freedom Mobile licences for a decade.
The minister also announced his department would launch a review of Canada91裸聊视频檚 spectrum transfer framework, noting one has not been conducted in nearly a decade.
Champagne vowed to 91裸聊视频渂e like a hawk on behalf of Canadians91裸聊视频� to ensure the companies adhere to the conditions.
91裸聊视频淢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,91裸聊视频� he said.
Asked how he will enforce the conditions, the minister told reporters, 91裸聊视频淚91裸聊视频檓 a lawyer and it91裸聊视频檚 a contract,91裸聊视频� before adding that the deal is subject to arbitration.
91裸聊视频淚 would not mess with the regulator,91裸聊视频� he said. 91裸聊视频淚t91裸聊视频檚 never a good thing, not only if you have a contract with conditions, but on top of that, just think about the penalties.91裸聊视频�
If Rogers breaches its conditions, it must pay $1 billion in damages, the minister said. Videotron would be subject to $200 million if it fails to meet its commitments.
91裸聊视频淚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,91裸聊视频� Champagne said.
In January, the Federal Court of Appeal rejected the Competition Bureau91裸聊视频檚 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 tribunal91裸聊视频檚 view that 91裸聊视频渢here was no substantial lessening of competition91裸聊视频� 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 Rogers91裸聊视频� acquisition of Shaw91裸聊视频檚 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 News 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 91裸聊视频淚91裸聊视频檓 the holdup91裸聊视频� when asked about the agreement91裸聊视频檚 constantly shifting deadline.
91裸聊视频淢y mission has been that this undertaking is to drive down prices. That91裸聊视频檚 the only thing that was the driving force behind it. That91裸聊视频檚 why it took so long,91裸聊视频� he said Friday.
He told reporters that the Liberal government has 91裸聊视频渃hanged the game91裸聊视频� for telecommunications companies in Canada, but promised 91裸聊视频渢his is not the end of it.91裸聊视频�
91裸聊视频淚f we don91裸聊视频檛 see prices coming down 91裸聊视频� I91裸聊视频檒l be seeking additional power to make sure that we drive down prices and at that time, everything is on the table,91裸聊视频� he said.
91裸聊视频擲ammy Hudes, The Canadian Press
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