Rogers agrees with Canada’s competition bureau to put Shaw merger on hold

TORONTO, May 30 (Reuters) – Rogers Communications Inc announced on Monday that it will not complete its proposed C$20 billion ($15.8 billion) acquisition of Shaw Communications Inc (SJRb.TO) until it has reached an agreement with the competition bureau or the competition tribunal has rendered its decision.

Rogers also said that it is open to reaching an agreement with the bureau, but that it disagrees with the agency’s reasoning for rejecting the offer and will appeal the decision.

In a statement, a Rogers spokeswoman stated, “Today’s agreement with the Commissioner permits the parties to focus on addressing the Commissioner’s concerns with the Transaction in order to negotiate a resolution.”

Rogers (RCIb.TO) also agreed not to enforce any of the transaction’s conditions, claiming that doing so would “restrict the operation, maintenance, enhancement, or expansion of the Shaw Wireless Services company.”

The merger has been halted by Canada’s competition bureau, which has petitioned the tribunal to reject it on the grounds that it will reduce competition in the telecom sector. find out more

By Tuesday, Rogers was due to respond to the bureau’s challenge. According to legal experts who did not want to be identified due to the sensitivity of the topic, Monday’s announcement will give Rogers more time to pursue a resolution with the agency, including potential concessions.

“In order for Canadians to have access to inexpensive, high-quality wireless services, fierce competition is required.” Commissioner of Competition Matthew Boswell remarked, “I’m glad that this issue can now advance rapidly toward a hearing before the tribunal.”

(1 Canadian dollar = 1.2655 dollars)