Rogers Attempt To Buy Shaw Will Get A Good Hard Look By Regulators

I’m pretty sure the folks in Rogers HQ at 1 Mount Pleasant in Toronto are not happy about this development. Reuters is reporting that the Competition Bureau is going to take a look at Rogers attempt to buy Shaw:

The Canadian regulator looking into telecom company Rogers Communications’ planned C$20 billion ($16 billion) purchase of Shaw Communications has obtained court orders to advance its review, the Competition Bureau said on Thursday.

In March, Rogers agreed to buy Shaw in a deal that would create Canada’s second-largest cellular and cable operator. 

The Canadian government was quick to say it would attract stiff regulatory scrutiny, including an investigation from the Competition Bureau and a parliamentary hearing. 

The orders obtained earlier this week will allow the bureau to compel companies including BCE Inc, TELUS Corp and Quebecor Inc-owned Videotron to produce records relevant to the investigation, a statement from the bureau said.

I am not an expert on this sort of thing. But I am thinking that the fact that this deal isn’t being rubber stamped by the relevant Canadian authorities has to concern Rogers as that would that opens up the possibility that someone will put the kibosh on this deal. Because many people think that this deal isn’t good for consumers as there would be less competition. Hopefully the Competition Bureau keep that in mind as they investigate this deal.

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