SJR - Why Shaw Is Soaring Today and Pulling Rogers Higher With It
Shares of Canadian telco companies Shaw Communications (NYSE: SJR) and Rogers Communications (NYSE: RCI) are defying Friday's broad market's weakness by rallying into the headwind. Fueled by legal progress of their intended merger, as of 1:30 p.m. ET, shares of Shaw were up 9.3%, while Rogers' stock was higher to the tune of 4.9%.
Canada's cable TV, broadband, and wireless service provider Rogers Communications is one step closer to acquiring rival Shaw Communications. Late Thursday, Canada's Competition Tribunal further paved the way for the deal by allowing Quebecor 's (OTC: QBCA.F) wholly owned subsidiary Videotron to proceed with its purchase of Shaw's mobile phone arm Freedom Mobile. Without this divestiture, the pairing of Shaw and Rogers prospectively violates Canadian antitrust regulations.
Rogers' acquisition of Shaw Communications still isn't a done deal. Thursday's official statement from the Competition Tribunal only states the Videotron/Freedom Mobile union should be allowed to proceed, which in turn facilitates the eventual Shaw/Rogers tie-up.
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Why Shaw Is Soaring Today, and Pulling Rogers Higher With It