Canada’s federal government in Ottawa is expected to approve the $26 billion takeover of Shaw Communications (SJR) by rival Rogers Communications (RCI).
Multiple media reports state that Federal Industry Minister François-Philippe Champagne will make the announcement at a news conference in Ottawa today (March 31).
Several conditions will be imposed on the deal to try and improve competitiveness in Canada’s telecommunications sector. Champagne has said in the past that he is pushing the two companies for binding commitments that will improve service and prices.
The acquisition, which was first announced two years ago, has cleared all legal hurdles and regulatory requirements.
Rogers and Shaw have already agreed to several concessions to win approval for the deal, including agreeing to sell Shaw’s Freedom Mobile division to Quebecor (QBR) for $3 billion.
Canada’s antitrust watchdog tried to block the deal in court, saying it will ultimately lead to less competition in the Canadian market and higher telecommunications fees for Canadians.
Studies show that Canadians already pay some of the highest wireless fees in the world, and consumer groups have expressed concerns about Rogers’ takeover of Shaw.
Shaw’s stock has been flat over the last year at $39.16 per share. Rogers’ stock has declined 9% in the past 12 months to $64.50 a share.
Rogers has agreed to pay $40.50 a share to acquire Shaw Communications.
