Rogers Communications, Shaw Communications and Quebecor announce Friday that they have entered into a definitive agreement which provides for the sale of Freedom Mobile to Videotron, a subsidiary of Quebecor, subject to regulatory approvals and the closing of the merger between Shaw and Rogers, announced on March 15 last.
The news is announced by Quebecor in a press release.
Late last month, Rogers and Shaw agreed to extend the deadline for their proposed merger until December 31.
The three Canadian telecommunications giants say they are convinced that the transaction is the best option for the emergence of a strong fourth Canadian wireless service provider. They also believe it responds to concerns raised by the Commissioner of Competition and the Minister of Innovation, Science and Industry regarding the Rogers-Shaw transaction.
Rogers has announced it will sell Freedom Mobile to Quebecor for $2.85 billion, as it seeks the green light from authorities for its $26 billion takeover of Shaw. The deal would see Quebecor buy all of Freedom’s wireless and internet customers, as well as its infrastructure, spectrum and outlets.
In order for the Freedom transaction to proceed, the parties point out that the one between Rogers and Shaw would need to be approved.
The Rogers-Shaw transaction signed in March 2021 has notably already received approval from shareholders and the Canadian Radio-television and Telecommunications Commission (CRTC), but it remains subject to review by the Competition Bureau and the Ministry of Finance. of Innovation, Science and Economic Development.
Moreover, last May, the Competition Bureau rejected Rogers’ proposal to acquire Shaw and it is possible that the case will be decided by the Competition Tribunal.
On Friday, Rogers President and CEO Tony Staffieri said he believes the sale of Freedom Mobile to Quebecor addresses concerns raised by the Competition Commissioner and the Minister of Innovation, Science and Industry, Francois-Philippe Champagne.