Key Takeaways:
- Rogers Communications Inc. and Shaw Communications Inc. have stated that they will contest the Competition Tribunal’s decision.
- Rogers and Shaw believe their agreement is beneficial to Canadian consumers, businesses, and the economy.
- Shaw’s capacity to operate, maintain, enhance, or expand its wireless business will not be restricted by Rogers.
Rogers Communications Inc., as well as Shaw Communications Inc., say they will fight a Competition Tribunal hearing. Still, they have agreed to postpone their $26 billion mergers till the Competition Bureau’s objections are resolved.
Rogers and Shaw said in a statement Monday afternoon that the agreement with Matthew Boswell, the commissioner of competition, “allows the parties to focus on addressing (his) issues with the transaction to negotiate a resolution.”
The competition commissioner applied on May 9 to stop Rogers from buying Shaw, claiming that the deal would result in poor service and increased prices for customers.
He also claimed that removing Shaw as a rival would reverse the years of progress gained in Canada’s telecom sector.
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Rogers and Shaw said they think their deal is in the best interests of Canadian consumers, businesses, and the economy. Reaching an agreement is the “optimal path” to quickly achieving those benefits.
“If a Tribunal hearing is ultimately required to resolve the commissioner’s motion to block the transaction,” Rogers and Shaw stated in a news release, adding that an expedited schedule for that application is expected to be set soon.
The two telecoms state in their agreement with the Competition Bureau that they disagree with the commissioner’s judgments.
Rogers and Shaw have accepted a preliminary injunction that stops them from concluding the proposed deal “until the commissioner’s challenge is considered and decided by the Competition Tribunal,” according to the Competition Bureau.
According to the statement, Rogers has also promised not to restrict Shaw’s ability to operate, maintain, enhance, or expand its wireless business.
Rogers and Shaw declared earlier this month that they would go ahead with the acquisition despite the commissioner’s efforts to halt it.
Source: Global News
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