Sources say Rogers Building, quarters of Rogers Communications in Toronto are the main contributors to the exclusive-Rogers Shaw M&A on Shaw Mobile sale.
The TORONTO Reuters- Canada competition bureau is expected to ask Rogers Communications Inc to sell Shaw Communications Inc's cellular business in order to overcome 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 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.
Rogers-Shaw agreed last week to sell Freedom Mobile, the cellular business owned by Shaw, to Montreal-based Quebecor Inc for C $2.85 billion. The bureau previously said that the sale of Freedom Mobile isn't enough to boost competition in the Canadian market.
A Rogers spokeswoman pointed out documents filed with the Competition Tribunal where antitrust cases are decided, this month, where it claimed Shaw's own cellular operation has no sustainable path to grow. The Commissioner has overstated the competitive significance and impact of the Shaw Mobile brand as opposed to Freedom, the spokesperson said.
Representatives of Shaw and Quebecor were not available for comment, while the competition bureau refused to make a statement.