Rogers Communications (NYSE:RCI) and Shaw Communications (NYSE:SJR) have confirmed to Canada’s Competitors Tribunal that they’ll search mediation on their deliberate C$26B merger, with questions persevering with to heart on Shaw’s wi-fi enterprise.
The mediation interval has beforehand been set for July 4-5. The request got here at a deadline set by the Tribunal for in search of mediation.
Shares of each Rogers and Shaw are greater amid broader market positive aspects Friday: RCI +1.4%, SJR +1%.
The merger of two of Canada’s prime communications corporations has a number of regulatory stakeholders, together with Canada’s Competitors Bureau, Competitors Tribunal, the Canadian Radio-television and Telecommunications Fee, and the minister of Innovation/Science/Trade.
Late final Friday, Rogers, Shaw and Quebecor (OTCPK:QBCRF) introduced a deal to promote Shaw’s Freedom Cellular unit to Quebecor for C$2.85B (about $2.3B), addressing a key regulatory concern. However the Competitors Bureau had beforehand stated promoting Freedom Cellular could be inadequate to clear the deal, and Reuters famous promoting Shaw Cellular could be required.
“The Commissioner has overstated the aggressive significance and influence of the Shaw Cellular model (as distinct from Freedom),” Rogers stated in a submitting with the Competitors Tribunal.
Shaw Cellular was launched in 2020 as a low-cost mobile different for Shaw’s Web clients, and has about 450,000 subscribers in Western Canada. Shaw had closed on its acquisition of Wind Cellular (which had about 940,000 subs and was renamed to Freedom Cellular) in March 2016.