Rogers-Shaw M&A hinges on Shaw Mobile sale, sources say

TORONTO: Canada’s competition bureau is expected to ask Rogers Communications Inc to sell Shaw Communications Inc’s cellular business to overcome the antitrust concerns presented by Rogers’ C$20 billion ($15.4 billion) acquisition of Shaw, two sources familiar with the matter told Reuters on Thursday.

Canada’s competition bureau has blocked Rogers’ proposed purchase of Shaw on the grounds that the deal will lessen competition in the telecom sector, leading to increased mobile bills for consumers.

As part of the merger remedy, Rogers-Shaw last week agreed to sell Freedom Mobile, the cellular business owned by Shaw, to Montreal-based Quebecor Inc for C$2.85 billion. The bureau has previously said that the sale of Freedom Mobile isn’t sufficient to bolster competition in the Canadian market.