Rogers Communications overcame the final hurdle in a more than two-year bid to acquire Shaw Communications for CAD20 billion ($14.8 billion), after receiving final approvals from Canada’s government.
Minister of Innovation, Science and Industry Francois-Philippe Champagne approved a transfer of some Shaw Communications’ spectrum licences to Videotron, which was part of a deal involving the sale of Freedom Mobile struck to appease competition concerns in Rogers Communications’ acquisition.
There are strict conditions for Rogers Communications, which is required to establish a Western headquarters in Calgary, create 3,000 jobs in the region, expand 5G coverage and services, and offer lower-cost service tariffs, among other obligations.
Reuters reported Rogers Communications faces a fine of up to CAD1 billion if it fails to meet the conditions.
The news site also stated Champagne secured a commitment from Videotron to offer tariffs at least 20 per cent cheaper than its competitors and make investments in Freedom Mobile’s network over the next two years.
Failure to meet those conditions will result in a CAD200 million penalty.
Rogers Communications, Shaw Communications and Videotron expect the transactions to close on 7 April.Subscribe to our daily newsletter Back