The Competition Court’s support for the Shaw-Rogers merger, announced earlier this week, is being assessed by Minister for Innovation, Science and Industry François-Philippe Champagne, who must give his approval for the transaction to proceed.
• Also read: Green light for Shaw-Rogers merger: Competition Authority files appeal
Mr Champagne said on Saturday that he would “examine in detail” the competition court’s decision. “I will not make my separate decision until I have more clarity on the ongoing court case,” he said.
However, the minister recalled that he had opposed Rogers’ acquisition of Shaw in the past for fear of less competition in the telecoms sector, which in Canada is largely dominated by Bell, Rogers and Telus.
“Having already declined the transfer of spectrum licenses from Shaw to Rogers, I only need to consider the separate request to transfer spectrum licenses from Shaw to Quebecor. Promoting competition and affordability in telecom is one of my top priorities. This position has not changed,” commented Mr. Champagne.
The $26 billion merger plan currently sees Shaw selling its western Canadian subsidiary Freedom Mobile to Quebecor, which aims to build its subsidiary Videotron into a national telecoms player.
The competition court ruled in a decision published Thursday that the proposed merger and divestiture of Freedom Mobile “is unlikely to materially eliminate or reduce competition in the telecommunications space in Canada.”
This decision disappointed the competition office, which intends to appeal the verdict.