Quebecor inks agreement to buy Shaw’s Freedom Mobile

Quebecor Inc., Rogers Communications Inc., and Shaw Communications Inc. have formally inked a deal that would see Quebecor purchase Shaw's Freedom Mobile brand should regulators approve the latter's acquisition by Rogers. In a Friday morning press release, the three companies said they hoped the deal would be enough to appease regulators' desires for a fourth competitor in the mobile wireless space. "The parties strongly believe the Freedom Transaction provides the best opportunity to create a strong fourth national wireless services provider and addresses the concerns raised by the Commissioner of Competition and the Minister of Innovation, Science and Industry regarding the Rogers-Shaw Transaction," the release read. The release added that the deal is "substantially consistent" with the terms previously announced in June, in which the companies announced that Quebecor would purchase the mobile brand for $2.85 billion. The announcement of the deal has thus far not been enough to satisfy the Competition Bureau, as Shaw and Rogers announced in early July that mediation sessions between the companies and the bureau had failed to produce an agreement. Wireless has long been seen to be the major sticking point of the deal, though the Competition Bureau’s submissions to the tribunal indicate a broader opposition to the merger. “This Agreement with Quebecor brings us one step closer to completing our merger with Shaw,” Rogers CEO Tony Staffieri said in the release. “We strongly believe that this divestiture solution addresses the concerns raised by the Commissioner of Competition and the Minister of Innovation, Science and Industry and we look forward to securing the outstanding regulatory approvals for our merger with Shaw so that we can start delivering its significant long-term benefits to Canadian consumers and businesses, including improved network resiliency.” In a Friday note, National Bank analyst Adam Shine noted that there are some 450,000 Shaw Mobile subscribers that are bundled with Shaw's home internet offering that won't be included in the Freedom deal, "but it remains hard to believe that a $26 billion transaction could fall apart because of less than half a million low-ARPU wireless subscribers." Quebecor's purchase of VMedia Inc. last month will give the Quebec-based company something of a television foothold in the Toronto area, where most of VMedia's customers are based, and Quebecor CEO Pierre Karl Péladeau told analysts earlier this month that he was hoping the acquisition was enough to get the deal over the line.

Quebecor inks agreement to buy Shaw’s Freedom Mobile

Brief | August 12, 2022

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Quebecor inks agreement to buy Shaw’s Freedom Mobile

Brief | August 12, 2022

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