(Ottawa) The Competition Tribunal has dismissed a Competition Bureau application paving the way for Rogers Communications’ proposed purchase of Shaw Communications for $26 billion.
However, the agreement must be approved by Innovation, Science and Economic Development Canada.
In a summary of its decision released Thursday, the Tribunal says the merger of the two telecommunications companies would not result in a significant price increase.
The decision indicates that the transaction, which includes the sale of Freedom Mobile, owned by Shaw, to Videotron, owned by Quebecor, would not be likely to prevent or lessen competition substantially.
A more detailed decision will be made in the next two days.
The Competition Tribunal held four weeks of hearings to discuss concerns about the deal proposed earlier this year.
Throughout the hearing, the Competition Bureau argued that the merger would reduce competition in the telecommunications market, drive up prices and lead to poor service.
Rogers and Shaw argued the deal would enhance competition and be better for consumers.