Stocksak: Shaw, Rogers deal mediation with Canada’s competition bureau fails

© Stocksak. In this illustration taken on July 8, 2022 the Ethernet cables are shown in front of the Shaw Communications logos. REUTERS/Dado Ruvic/Illustrations

By Divya Rajagopal

TORONTO (Stocksak), Rogers Communications Inc. (NYSE:) and Shaw Communications (NYSE.A.) have not been able to resolve their differences with Canada’s competition bureau regarding their merger worth C$20billion ($14.75billion), the companies claimed on Thursday.

“The mediation was not successful in reaching a negotiated settlement,” the companies stated in a joint statement. However, they maintained their commitment to completing the transactions.

The statement did not mention whether parties would meet again on Friday for mediation or whether the dispute would be referred to the tribunal for a hearing, which is scheduled to begin on Nov. 7.

Canada’s recent intervention in the matter had raised hopes that Canada would approve it. However, Canada has blocked the deal due to competition concerns.

Rogers (NYSE):, which launched its bid for Shaw back in March 2021, has offered the sale of Shaw’s Freedom Mobile business to Quebecor Inc to allay antitrust regulators.

However, the watchdog stated that the sale is not enough to alleviate its concerns about market concentration.

Rogers declined to comment beyond his statement, while Shaw (and the bureau) did not immediately respond.

($1 = 1.3560 Canadian dollars)

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