Rogers-Shaw deal: Competition watchdog ‘disappointed’ after clearing major hurdle – National

The Competition Tribunal has dismissed an application by Canada’s competition watchdog to block Rogers Communications Inc.’s proposed purchase of Shaw Communications Inc. for $26 billion, paving the way for the completion of the agreement.

Canada’s Competition Bureau argued that merging the two telecommunications companies would reduce competition in the telecommunications market, trigger higher prices and lead to poor service.

However, in a summary of its decision released Thursday, the court said the merger would not result in significantly higher prices.

He said the deal, which includes the sale of Shaw-owned Freedom Mobile to Quebecor-owned Videotron Ltd., is unlikely to prevent or lessen competition substantially.

The deal still needs to be approved by Innovation, Science and Economic Development Canada.

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The Competition Bureau Canada said it was very disappointed with the Tribunal’s decision.

“I am very disappointed that the Tribunal rejects our request to block the merger between Rogers and Shaw,” said Matthew Boswell, Commissioner of Competition, in a brief statement Thursday evening. « We are carefully considering our next steps. »

The current closing date of the agreement is Saturday, although the parties have the option of extending until the end of January if necessary.