RCI - Rogers Communications closes takeover of Shaw in Canada's biggest telecom deal

2023-04-03 10:52:17 ET

Rogers Communications ( NYSE: RCI ) has closed its C$26B acquisition of Shaw Communications ( NYSE: SJR ), bringing a long regulatory saga to a close and combining two of Canada's major carriers in the country's biggest-ever telecom deal.

The combination -- about $19B in U.S. dollars -- results in a national coast-to-coast wireline company that also sports Canada's largest 5G network and provides fiber Internet service to nearly 70% of the country's households.

"Rogers and Shaw have been connecting Canadians for more than 50 years, and we’re thrilled to come together as one company to build on a shared legacy of investment, innovation, and entrepreneurship,” said Rogers' chairman, Edward Rogers.

"Today, we close one chapter of our story and we open another that, together with Rogers, will see more Canadians have access to higher-quality networks and expanded connectivity to rural, remote and Indigenous communities,” said Brad Shaw.

The Shaw family becomes one of the biggest shareholders of Rogers, and Brad Shaw and Trevor English (Shaw's former chief financial and corporate development officer) are expected to be appointed to Rogers' board tomorrow.

Canadian Industry Minister François-Philippe Champagne promised to "be like a hawk" to ensure compliance with more than 20 commitments he secured in order to boost competition and keep phone and Internet costs low.

It was Champagne's Friday approval of transferring Shaw's Freedom Wireless spectrum to Quebecor's ( OTCPK:QBCRF ) Vidéotron that marked the last of a number of regulatory steps and paved the way for the merger to complete .

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