Article author:
Canadian Press
TORONTO — Meetings between the Competition Bureau and Rogers Communications Inc. and Shaw Communications Inc. was unable to resolve a regulatory objection to the merger this week, the two companies said Wednesday.
Professor Dwayne Winsek of Carlton University said the result was that the sale of wireless operator Freedom Mobile to Quebecor Inc. was a regulatory agency's proposal for a merger, especially since Shaw. He said it suggests that it is not enough to alleviate concerns. The mobile business will be maintained.
"It's not entirely clear if this deal will end with the Competition Bureau," Winseck said.
"The Competition Bureau opposed the proposed merger because it had serious problems overall ... and just chopping up its fragments would probably be so. It won't be. It's good enough. "
Rogers and Shaw met with the competition watchdog on Monday and Tuesday as part of the mediation process. Regulators are trying to thwart the merger, claiming that Canadians have less choice and consumers will be charged higher.
The Competition Bureau said that the sale of Freedom does not replace the intensifying competition that Shaw Mobile offers in Alberta and British Columbia, and ultimately competitiveness. Is said to weaken.
Rogers and Shaw said in a statement that the transaction review process would continue as previously disclosed, adding that consultations with regulatory agencies could continue at any time.
The two companies said they intend to continue their efforts to highlight the benefits of the merger, including a proposal to sell Freedom to Quebecor Inc.
Morningstar analyst Matthew Dolgin resolved that mediation was another way that could still have been able to move it forward, so it was a negative for the fate of the deal. I was seeing a lack.
"But I wanted both sides to be able to reach an agreement. If the agreement was not reached and the proceedings were brought to a competitive court, I would Rogers. I think the show is in their favor. " The
Rogers-Shaw transaction, which has already been approved by shareholders and the Canadian Radio-Television Communications Commission, is subject to review by the Competition Bureau and the Minister of Innovation, Science and Economic Development.
On Monday, Alberta submitted a notice stating its intention to intervene in the competition court proceedings regarding transactions.
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