On April 3, Rogers Communications (TSX:RCI.B)(NYSE:RCI) announced that it had completed its 'transformative merger with Shaw,' giving it a much stronger presence in Western Canada. The two companies have decades of experience serving Canadians and Rogers says that they have invested more than $40 billion in their networks over the past decade.
The larger, broader entity will have more market share. Plus, with more money behind Shaw's business, it could help the company compete with rival Telus (TSX:T)(NYSE:TU). There was a lot of controversy about whether the Rogers-Shaw deal would go through given the impact on competition. But Rogers believes through the acquisition, it will better serve Canadians and offer more innovation as well.
Regardless of how it all plays out, the one definitive from this is that Rogers is an even bigger player than it was before, reaching more of the population and having more pricing power than before. For a stock that trades at only 19 times earnings, which isn't expensive for a company of this size and stature, this could be a great time to invest in Rogers as it is down 20% from its 52-week high and it also pays an attractive dividend yield of 3.1%.
Getting bigger and eating up more market share will make Rogers a better investment in the long run. While many consumers may not be thrilled with Rogers and Shaw joining forces, for investors, this can make the stock a solid no-brainer buy and an investment that you can buy and forget about.
