Rogers acquires rival Shaw in Canadian telecoms shake-up
BENGALURU|OTTAWA: Rogers Communications Inc said on Monday it was buying rival Shaw Communications Inc for about C$20 billion (RM66.13 billion) in a deal that would create Canada's second-largest cellular and cable operator but might attract stiff regulatory scrutiny. By acquiring fourth-ranked Shaw, Rogers would leapfrog Telus Corp, taking on market leader BCE Inc. Shaw's strong presence in Western Canada would also help Rogers double down on its efforts to roll out 5G throughout the country. Shaw shares jumped 42% to C$34, but traded well below the offer price of US$40.50, suggesting doubts about the deal, which is valued at C$26 billion including debt. Shares of Rogers were also up 7% at C$64. The deal, if completed, would be the biggest Canadian telecoms merger since BCE completed the spinoff of its stake in Nortel Networks in a transaction valued at C$88.7 billion, according to Refinitiv data. “It’s really too early to speculate on the regulatory outcome overall,“ Rogers chief executive officer Joseph Natale said on a conference call. “But we feel confident this transaction will be approved.” The deal will be reviewed by the independent Competition Bureau of Canada, the Canadian Radio-television and Telecommunications Commission, as well as the department of Innovation, Science, and Economic Development.
Rogers acquires rival Shaw in Canadian telecoms shake-up
BENGALURU|OTTAWA: Rogers Communications Inc said on Monday it was buying rival Shaw Communications Inc for about C$20 billion (RM66.13 billion) in a deal that would create Canada's second-largest cellular and cable operator but might attract stiff regulatory scrutiny. By acquiring fourth-ranked Shaw, Rogers would leapfrog Telus Corp, taking on market leader BCE Inc. Shaw's strong presence in Western Canada would also help Rogers double down on its efforts to roll out 5G throughout the country. Shaw shares jumped 42% to C$34, but traded well below the offer price of US$40.50, suggesting doubts about the deal, which is valued at C$26 billion including debt. Shares of Rogers were also up 7% at C$64. The deal, if completed, would be the biggest Canadian telecoms merger since BCE completed the spinoff of its stake in Nortel Networks in a transaction valued at C$88.7 billion, according to Refinitiv data. “It’s really too early to speculate on the regulatory outcome overall,“ Rogers chief executive officer Joseph Natale said on a conference call. “But we feel confident this transaction will be approved.” The deal will be reviewed by the independent Competition Bureau of Canada, the Canadian Radio-television and Telecommunications Commission, as well as the department of Innovation, Science, and Economic Development.