Rogers signs deal to buy Shaw in transaction valued at $26B
Rogers to invest $2.5B in 5G networks across Western Canada over next 5 years as part of transaction
The Canadian Press · Posted: Mar 15, 2021 8:25 AM ET |
Rogers Communications has signed a deal to buy Shaw Communications in a transaction valued at $26 billion, including debt, which would create Canada's No. 2 cellular operator — but is likely to face stiff regulatory scrutiny.
Under the plan, Rogers will pay $40.50 in cash for each of Shaw's issued and outstanding class A and class B shares. Shaw's class B shares closed at $23.90 on the Toronto Stock Exchange on Friday.
As part of the transaction, the companies said Rogers will invest $2.5 billion in 5G networks over the next five years across Western Canada.
Rogers also says it will create a new $1 billion fund dedicated to connecting rural, remote and Indigenous communities across Western Canada to high-speed internet service.
By acquiring fourth-ranked Shaw, Rogers would leap past current No. 2 Telus to take on market leader BCE Inc., the publicly traded holding company for the Bell Canada group of companies.
Deal subject to shareholder approval, regulatory review
The deal, which requires shareholder approval, is subject to other customary closing conditions, as well as approvals from Canadian regulators. It is expected to close in the first half of 2022.
The deal will face review by the independent Competition Bureau of Canada, the Canadian Radio-television and Telecommunications Commission (CRTC), as well as the federal department of Innovation, Science, and Economic Development (ISED).
Canadian Innovation Minister François-Philippe Champagne said the review would focus on "affordability, competition, and innovation."
Rogers chief executive Joe Natale told analysts in a Monday morning conference call that it's too early to speculate on whether the competitors will be required to divest any of their operations.
"But we feel confident this transaction will be approved," Natale said.
Read more here: https://www.cbc.ca/news/business/rogers ... -1.5949825