Quebecor Inc. has agreed with Rogers Communications Inc. and Shaw Communications Inc. buy Freedom Mobile for $ 2.85 billion in business value, companies said Friday.
The deal comes after the antitrust regulator reiterated its opposition to Rogers’ plan to buy Shaw and is subject to approval by the Canadian Competition Authority and the federal Department of Innovation, Science and Technology. Economic Development, companies said.
It covers all Internet customers and Freedom’s branded wireless, infrastructure, spectrum and retail locations, they added in a statement.
Toronto-based Rogers made a $ 26 billion bid for Calgary-based Shaw, and has also offered to sell Shaw’s Freedom mobile unit to alleviate competition issues as part of the agreement.
The agreement offers “viable and sustainable” competition, companies say
The Competition Bureau had said the sale would weaken Freedom’s operations, reducing “competitive discipline” among domestic carriers and lead to a transfer of wealth from low- and middle-income groups to wealthy Rogers-Shaw families.
“The parties strongly believe that the agreement effectively addresses concerns … about viable and sustainable wireless competition in Canada,” they said in a statement, referring to the reservations of the competition control body. and the Minister of Industry.
The companies will also offer transportation and roaming services in Quebecor as part of the agreement.
“We look forward to obtaining exceptional regulatory approvals for our merger with Shaw so that we can deliver significant long-term benefits to Canadian consumers, businesses and the economy,” said Rogers CEO Tony Staffieri.
Canadian law allows for the approval of mergers that harm competition if companies can demonstrate that the mergers bring efficiency to the economy.