Rogers Communications Inc and Shaw Communications Inc have finalized an agreement to sell Freedom Mobile to Videotron, a unit of Quebecor Inc, the companies said on Friday, paving the way for a merger of Canada's biggest telecom companies.
In May of this year, Canada's antitrust agency blocked Rogers' C $20 billion acquisition of Shaw, saying it would lessen competition in the country's concentrated telecoms market, where customers pay among the highest bills.
Rogers and Shaw had offered the sale of Freedom Mobile, a unit of Shaw, as a way to allay competition concerns.
The agreement with Quebecor brings us one step closer to completing our merger with Shaw, Rogers Chief Executive Tony Staffieri said on Friday.
The move comes after Rogers opposed a request from regulators for more time to investigate the Freedom Mobile sale to Quebecor.
Canada's competition bureau did not respond to a request for comment.