Competition watchdog holding firm in its opposition of Rogers, Shaw $26B proposed deal

Canada’s competition watchdog is holding firm in its opposition to Rogers Communications Inc.’s $26-billion proposed takeover of Shaw Communications Inc., as the telecom companies remain set on getting the deal across the finish line.

The final group of witnesses spoke before the Competition Tribunal on Thursday, Dec. 1 during a hearing on the merger.

Testimony and cross-examination focused largely on potential efficiencies tied to the deal, as well as tax implications.

Throughout the hearing, the Competition Bureau argued the merger would lessen competition in the telecom market.

Meanwhile, Rogers and Shaw insisted the deal, which includes a proposal to sell Shaw-owned wireless carrier Freedom Mobile to Québecor Inc.-owned Videotron Ltd., will enhance competition and be better for consumers.

Shaw also revealed it needs the merger because it doesn’t see a viable path forward as a standalone company.

Over the past four weeks, Chief Justice Paul Crampton, head of the tribunal panel, his co-panelists and the public have heard from a series of witnesses, including Shaw chief executive officer (CEO) Bradley Shaw, Québecor CEO Pierre Karl Péladeau, Rogers senior vice-president of finance Marisa Fabiano, economics experts, accountants, as well as Bell, Telus and Freedom employees.

The hearing aims to resolve the impasse between the Commissioner of Competition and Rogers and Shaw. Oral arguments will take place on Dec. 13 and 14.

The Competition Bureau is one of three regulatory agencies that must approve the deal, in addition to the CRTC and Innovation, Science and Economic Development Canada.

Rogers wants to close the Shaw deal by the end of the year, with a possible further extension to Jan. 31, 2023.

Rogers Communications is the parent company of this website.

This report by The Canadian Press was first published Dec. 1, 2022.