Rogers Communications Inc. and Shaw Communications Inc. they were unable to resolve concerns about their mediation linkage with the country’s competition control body, the companies said Wednesday.
In a brief statement, Rogers and Shaw said the regulatory review process will continue as planned.
Rogers announced its $ 20 billion friendly acquisition deal with Shaw in March 2021.
Although the transaction has been approved by the Canadian Radio-television and Telecommunications Commission, it still requires the blessing of the Minister of Industry of Canada and the Office of Competition.
Competition commissioner Matthew Boswell has opposed the deal, saying it will lessen competition, regardless of Rogers’ plan to divest Shaw’s Freedom Mobile wireless business.
Mediation between the two companies and Boswell took place earlier this week; Rogers and Shaw said in their statement that “they are not prevented from continuing discussions with the commissioner at any time.”
A spokesman for the Competition Office declined to comment on the outcome of the mediation.
“The Office is required by law to conduct its work in confidence, including remedial negotiations between the Bureau and the merging parties. As this matter is before the courts, we are not in a position to comment further. , nor would it be appropriate to speculate on possible outcomes, “Marie-Christine Vézina said in an email.
Shaw’s Class B shares fell Wednesday morning on the Toronto Stock Exchange, further moving away from the $ 40.50 per share takeover bid that has never arrived since the deal was announced. , which indicates skepticism about the fate of the transaction.
“Our opinion remains that the date was July 31, which did not change [Wednesday’s] press release, could be further expanded. Since the merger of T-Mobile and Sprint had to go through a two-year approval process, it is likely to be in the interest of all companies involved that this matter be resolved before the fall and before the major return to the school and later Thanksgiving. Christmas retail shopping periods, ”wrote Adam Shine, National Bank of Canada Financial Markets, in a report to customers.