Approval from the government last week means that Rogers Communications Inc. has been able to finalize it’s $26 billion dollar takeover of Shaw Communications Inc., over 2 years since the deal was first announced.
The Rogers news release on their website calls the merger “transformative” and states it will:
-Brings together two iconic, entrepreneurial Canadian companies
-Create one national cable, media, and wireless company
-Unlock billions in investment to bring significant benefit to Canada and Canadians
Edward Rogers, Chairman at Rogers said: “As a proud Canadian company, we’re committed to investing for Canada and Canadians for decades to come.”
Minister of Innovation, Science and Industry Minister Francois-Philippe Champagne gave the green light to the takeover on Friday by agreeing to the transfer of Shaw-owned Freedom Mobile’s wireless licenses to Quebecor Inc.’s Videotron, the final regulatory step allowing the main deal to go ahead.
In approving the deal, Champagne announced 21 conditions that Rogers and Videotron must adhere to, including Rogers establishing a second headquarters in Calgary and adding 3,000 new jobs based in Western Canada. It must also spend $5.5 billion to expand 5G coverage and additional network services, as well as a further $1 billion to connect rural, remote and Indigenous communities.
Videotron must offer plans that are at least 20 per cent lower than its competitors and spend $150 million over the next two years to upgrade Freedom Mobile’s network.
Rogers president and CEO Tony Staffieri welcomed Friday’s news.
“We are very pleased to move forward with this transformative merger and proudly deliver on our commitments to enhance and expand network coverage, connect underserved communities, and improve access for low-income Canadians,” Staffieri said in a press release.
“Building on a shared legacy with Shaw, we will invest substantially to bring more choice, more value, and more connectivity to Canadians across the country.”