A parliamentary committee has voted against Rogers’ (RCI.B) $26-billion bid for Shaw Communications (SJR.B).
The House of Commons industry and technology committee says if Rogers’ acquisition of Shaw Communications proceeds, the federal government should make its conditions attached to any approval “fully enforceable.”
In a report on the proposed merger, the committee recommends that the affordability and accessibility interests of Canadians should take precedence over all other considerations during the regulatory review process.
The non-binding report says the federal government should place an emphasis on the importance of Freedom Mobile, Shaw's wireless carrier, as a fourth wireless provider that competes with the Big Three of Rogers, Bell (BCE) and Telus (T).
The deal is under review by three different federal regulators including the Competition Bureau and the CRTC as well as spectrum regulator Innovation, Science and Economic Development Canada (ISED).
The parliamentary committee’s report came a day after Ottawa pledged to block the full transfer of Shaw's wireless licences to Rogers as part of the deal. Industry watchers had expected that Shaw would have to sell some of these assets as a condition of any approval of the deal.
The deal to buy Shaw and its Freedom Mobile wireless business has faced stiff opposition from consumer groups, academics, and customers. For their part, Rogers and Shaw have said they are continuing to work with the government and regulators on the proposed acquisition.
