Canadian court dismisses competition bureau’s bid to block Rogers-Shaw merger, boosting companies’ efforts to close deal.
The Competition Bureau of Canada recently attempted to block Rogers Communications Inc’s C$20 billion bid to buy Shaw Communications Inc. On Tuesday, however, a Canadian court dismissed the Bureau’s efforts. The transaction has become a test case for the competition bureau’s ability to increase choices for consumers in Canada, where a handful of companies control large swaths of business.
Justice David Stratas ruled that many of the points of law the antitrust agency raised were “without merit” and that it would be “pointless” to send the case back to the Competition Tribunal for redecision. Rogers and Shaw shares jumped on the decision, and both were trading up about 3% in late afternoon trade.
The Bureau previously failed to convince the Competition Tribunal that the deal was harmful for Canadian consumers, and it was approved on December 30th. National Bank of Canada analysts noted that the Bureau could appeal to the Supreme Court, though this would need to be reviewed by a committee of senior members in the Justice Department first.
Industry Minister Francois-Philippe Champagne said in a statement that he would review the court ruling on the deal and that competition and affordability in the telecoms sector remained a top priority. Rogers and Shaw intend to finalize the deal by January 31st, though the deadline can be extended in agreement with Quebecor.
The court’s decision to dismiss the Competition Bureau’s effort to block the C$20 billion merger between Rogers Communications and Shaw Communications is a major victory for both companies. The transaction has become a test case for the Competition Bureau’s ability to increase choices for consumers in Canada, where a handful of companies control large swaths of business. The Bureau previously failed to convince the Competition Tribunal that the deal was harmful for Canadian consumers, and it was approved on December 30th.
Industry Minister Francois-Philippe Champagne said in a statement that he would review the court ruling on the deal and that competition and affordability in the telecoms sector remained a top priority. National Bank of Canada analysts noted that the Bureau could appeal to the Supreme Court, though this would need to be reviewed by a committee of senior members in the Justice Department first. Rogers and Shaw intend to finalize the deal by January 31st, though the deadline can be extended in agreement with Quebecor.
The Competition Bureau of Canada recently attempted to block Rogers Communications Inc’s C$20 billion bid to buy Shaw Communications Inc. On Tuesday, however, a Canadian court dismissed the Bureau’s efforts. Justice David Stratas ruled that many of the points of law the antitrust agency raised were “without merit” and that it would be “pointless” to send the case back to the Competition Tribunal for redecision.
The court’s decision is a major victory for Rogers Communications and Shaw Communications, as it allows them to move forward with their merger. This transaction has become a test case for the Competition Bureau’s ability to increase choices for consumers in Canada, where a handful of companies control large swaths of business. The Bureau previously failed to convince the Competition Tribunal that the deal was harmful for Canadian consumers, and it was approved on December 30th.
Industry Minister Francois-Philippe Champagne said in a statement that he would review the court ruling on the deal and that competition and affordability in the telecoms sector remained a top priority. Rogers and Shaw intend to finalize the deal by January 31st, though the deadline can be extended in agreement with Quebecor. National Bank of Canada analysts noted that the Bureau could appeal to the Supreme Court, though this would need to be reviewed by a committee of senior members in the Justice Department first.
On Tuesday, a Canadian court dismissed the Competition Bureau of Canada’s effort to block Rogers Communications Inc’s C$20 billion bid to buy Shaw Communications Inc. This victory for both companies allows them to move forward with their merger, which has become a test case for the Competition Bureau’s ability to increase choices for consumers in Canada. Industry Minister Francois-Philippe Champagne said he would review the court ruling on the deal and that competition and affordability in the telecoms sector remained a top priority. Rogers and Shaw intend to finalize the deal by January 31st, though the deadline can be extended in agreement with Quebecor. National Bank of Canada analysts noted that the Bureau could appeal to the Supreme Court, though this would need to be reviewed by a committee of senior members in the Justice Department first.
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