Rogers Communications failed to make headway on a proposed CAD20 billion ($15.3 billion) deal to acquire rival Shaw Communications after two days of mediation with Canada’s Commissioner of Competition, but vowed to continue its pursuit of the deal.
The talks this week aimed to address Commissioner Matthew Boswell’s concerns the tie-up would decrease competition in the wireless market and increase costs for Canadians.
Rogers Communications stated the failure of the mediation did not prevent the operators “from continuing discussions with the Commissioner at any time”.
Boswell stated in May the Competition Bureau was taking action to block the deal to “preserve competition and choice for an essential service that Canadians expect to be affordable and high quality”.
The companies previously proposed selling Shaw Communications’ Freedom Mobile business to Montreal-based telecoms and media group Quebecor for CAD2.8 billion to assuage concerns over market control.
Rogers Communications stated the pair “intend to continue to work constructively with the Commissioner to highlight the many benefits of the merger to all Canadians, including maintaining a strong and sustainable fourth wireless carrier across Canada through the proposed divestiture”.