TORONTO — The merger saga of Rogers Communications Inc. and Shaw Communications Inc. continues as two days of talks with the Competition Bureau failed to resolve the watchdog’s objections to the companies’ proposed deal.
Here’s a look at some key moments leading up to this point:
March 15, 2021: Rogers announces an agreement to buy Shaw in a deal valued at $26 billion. Rogers says it will purchase all outstanding Class A and B shares of Shaw for $40.50 per share in cash, amounting to approximately $20 billion. The deal is also inclusive of about $6 billion of debt owed by Shaw.
The deal requires approval from shareholders, the Competition Bureau, the Canadian Radio-television and Telecommunications Commission (CRTC) and the Ministry of Innovation, Science, and Economic Development.
May 21, 2021: Shaw shareholders vote in favour of the proposed sale of the company to Rogers.
Nov. 22, 2021: The CRTC opens a five-day hearing to consider the Rogers-Shaw merger.
Nov. 25, 2021: BCE Inc. urges the CRTC to reject the proposed Rogers-Shaw deal, echoing concerns raised by broadcasters, producers and distributors about the market dominance Rogers would have if the deal were to be approved.
March 3, 2022: Industry Minister François-Philippe Champagne says the federal government will block the wholesale transfer of wireless licences owned by Shaw to Rogers.
March 24, 2022: The CRTC approves Rogers’ acquisition of Shaw’s broadcasting services, and lays out a series of conditions the company must meet.
May 9, 2022: The Competition Bureau files an application to block Rogers’ purchase of Shaw because it claims the transaction would lead to worse service and higher prices for consumers.
May 12, 2022: Quebecor Inc.’s CEO Pierre Karl Péladeau gives a strong signal that he would like to purchase Shaw-owned wireless carrier Freedom Mobile if regulators force Rogers to sell it as a requirement of the merger’s approval.
May 19, 2022: Globalive Capital founder Anthony Lacavera reinforces his bid for Freedom Mobile, formerly Wind Mobile, by signing a network and spectrum sharing agreement with Telus Corp., conditional on Globalive’s successful acquisition of Freedom. Lacavera founded Wind Mobile in 2008.
May 30, 2022: Rogers and Shaw agree to not close their deal until they have resolved the Competition Bureau’s concerns, either through a negotiated agreement or via the Competition Tribunal.
June 2, 2022: Globalive says it has gone straight to Shaw with its $3.75-billion offer for wireless carrier Freedom Mobile due to a lack of engagement from Rogers.
June 17, 2022: Rogers and Shaw make deal to sell Freedom Mobile to Quebecor for $2.85 billion in an attempt to ease the Competition Bureau’s concerns about the combination of the two companies.
June 24, 2022: Rogers, Shaw and the Competition Bureau agree to participate in a mediation process in July regarding the companies’ merger.
July 4, 2022: Two-day mediation period begins between Rogers, Shaw and the Competition Bureau.
July 6, 2022: Talks end with no resolution.
This report by The Canadian Press was first published July 6, 2022.
Companies in this story: (TSX:RCI.B, TSX:SJR.B, TSX:QBR.B, TSX:BCE)
