Rogers Closes $26 Billion Merger with Shaw on Conditions Following Government’s Approval

Rogers Communications has received final approval from Ottawa and closed its $26-billion purchase of Shaw Communications. As part of the deal, Shaw-owned Freedom Mobile’s wireless licenses will be transferred to Quebecor Inc.’s Videotron. Rogers and Videotron will be abiding by the conditions set by the minister of innovation, science, and industry.

The transaction was first proposed in 2021 and has now been approved by the government. Rogers Communications has closed its $26-billion purchase of Shaw Communications which entails a vast majority of Shaw’s wireless business, Freedom Mobile, being sold to Quebec-based Videotron. Rogers will have a much smaller part of Shaw’s wireless business, known as Shaw Mobile, which mostly operates in Alberta and B.C.

Industry Minister Francois-Philippe Champagne also shared that there are 21 conditions that Rogers and Videotron must abide by. Some of these include Rogers establishing a second headquarters in Calgary and adding 3,000 new jobs in Western Canada. Videotron is required to offer plans that are at least 20 percent lower than its competitors and also invest $150 million over the next two years to upgrade Freedom Mobile’s network.

Furthermore, Videotron is required to offer 5G service everywhere Freedom Mobile currently operates within two years, offer service in Manitoba via MVNO, and increase the data allotments for existing Freedom Mobile customers by 10 percent.

Champagne also added that if the companies fail to abide by the conditions, the government will “enforce the terms on behalf of Canadians.” Rogers is also subject to financial penalties of up to $1 billion for non-compliance.

The deal is expected to close by April 7.

Vineet Washington