RCI.B:CC - Shaw falls as mediation with Canadian regulators on Rogers deals fails
Shaw Communications ( NYSE: SJR ) fell 3% after the telecom operator and Rogers Communications ( NYSE: RCI ) failed to reached an agreement with Canadian antitrust officials after two days of mediation about the proposed takeover. Rogers dropped 2.3%.
Rogers ( RCI ) and Shaw ( SJR ) are not precluded from continuing discussions with the Commissioner of Competition, according to a statement.
Rogers ( RCI ) and Shaw ( SJR ) agreed late last month to seek two days of mediation with Canada's Competition Tribunal on their planned C$26B merger , with questions continuing to center on Shaw's wireless business.
The merger of two of Canada's top communications companies has several interested regulatory stakeholders, including Canada's Competition Bureau, Competition Tribunal, the Canadian Radio-television and Telecommunications Commission, and the minister of Innovation/Science/Industry.
Late last month, Rogers, Shaw and Quebecor ( OTCPK:QBCRF ) announced a deal to sell Shaw's Freedom Mobile unit to Quebecor for C$2.85B (about $2.3B), addressing a key regulatory concern. But the Competition Bureau had previously said selling Freedom Mobile might be insufficient to clear the deal, and Reuters has noted selling Shaw Mobile might be required.
Last month Canaccord upgraded Shaw ( SJR ) to buy after announcing the transaction to sell Shaw's Freedom Mobile.
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Shaw falls as mediation with Canadian regulators on Rogers deals fails