Rogers Communications Inc. will sell Freedom Mobile Inc. to Quebecor Inc. for $2.85 billion in a deal it hopes will appease federal regulators opposed to its proposed takeover of Shaw Communications Inc.
The cash-free, debt-free deal was announced late Friday and will see Quebecor buy all of Freedom91裸聊视频檚 branded wireless and internet customers, as well as its infrastructure, spectrum and retail locations.
The parties were working to reach a deal for weeks, while the Competition Bureau has been seeking to block the $26-billion Shaw merger over concerns it would substantially prevent or lessen competition in wireless services.
Rogers, Shaw and Quebecor argued their agreement would effectively address those concerns and keep alive a 91裸聊视频渟trong and sustainable91裸聊视频� fourth wireless carrier in Canada because the deal would expand Quebecor91裸聊视频檚 wireless operations nationally.
91裸聊视频淭his agreement between proven cable and wireless companies will ensure the continuation of a highly competitive market with robust future investments in Canada91裸聊视频檚 world-class networks,91裸聊视频� said Tony Staffieri, president and chief executive of Rogers, in a release.
Shaw CEO and executive chairman Brad Shaw labelled the deal 91裸聊视频渁n important milestone in our bold and transformative journey to join together with Rogers.91裸聊视频�
Meanwhile, Pierre Karl P茅ladeau, president and chief executive of Quebecor, called the agreement 91裸聊视频渁 turning point for the Canadian wireless market.91裸聊视频�
91裸聊视频淲e have always believed that for there to be healthy competition in wireless services only a player with a proven track record can successfully enter the market,91裸聊视频� he said in the same release as Staffieri.
91裸聊视频淭his is a value-added transaction for all consumers and the Canadian economy.91裸聊视频�
Quebecor beat out several other parties to reach the deal.
Globalive Capital signed a network and spectrum sharing agreement with Telus Corp. in May to boost its bid to purchase Freedom. Formerly known as Wind Mobile, Freedom was founded by Globalive founder and chairman Anthony Lacavera in 2008.
Eastlink, a Halifax-based telecommunications company, and New Brunswick-based rural internet provider Xplornet Communications Inc. were also said to be interested in Freedom.
The Rogers-Shaw transaction announced in March 2021 already has approval from the shareholders of Shaw and the Canadian Radio-television and Telecommunications Commission.
However, it remains subject to review by the Competition Bureau and the Minister of Innovation, Science and Economic Development.
The Competition Bureau expanded its opposition to Rogers91裸聊视频� proposed takeover of Shaw in new submissions made to the Competition Tribunal on Friday.
In legal filings released after markets closed, the agency challenged Rogers91裸聊视频� claims about efficiencies and said acquiring its closest rival is anticompetitive and would harm consumers through higher prices, lower quality services and lost innovation.
It also argued the proposed sales of Shaw91裸聊视频檚 Freedom is 91裸聊视频渘ot an effective remedy91裸聊视频� because it won91裸聊视频檛 replace the growing competition Shaw Mobile would deliver in Alberta and British Columbia and would make Freedom 91裸聊视频渁 subsequently weaker competitor91裸聊视频� than it would have been.
The bureau said the efficiencies Rogers claims the deal will create are insufficient to offset the anticompetitive effects and are 91裸聊视频渟peculative, unproven and unlikely to be achieved 91裸聊视频� or are grossly exaggerated.91裸聊视频� It added that stated efficiencies are based on 91裸聊视频渦nrealistic assumptions and flawed methodologies.91裸聊视频�
The Competition Bureau also said a subsequent increase in prices would result in wealth flowing from low- and moderate-income groups to shareholders including ultrarich members of family ownership groups of the companies.
Five weeks of Competition Tribunal hearings on the matter are scheduled to begin the week of Nov. 7, followed by written and oral arguments.
91裸聊视频� The Canadian Press
