The Canadian Radio-television and Telecommunications Commission (CRTC) has approved the acquisition by Rogers Communications of broadcasting services from Shaw, subject to certain conditions and modifications.
Updated yesterday at 8:57 p.m.
Approval from the broadcast regulator is one of many hurdles Rogers must navigate as it tries to complete the $26 billion deal it signed in March 2021 that will see it Acquire 16 cable television services established in Western Canada, a national satellite television service and other broadcasting and television services.
The Competition Bureau and Innovation, Science and Economic Development Canada are also reviewing the deal.
“The CRTC considers that the application, subject to modifications […]is the best possible proposition given the circumstances, and that this transaction would not diminish the diversity of voices in Canada,” the report states.
He also indicates that the CRTC concluded that the competitive landscape would not be unduly affected and that the transaction would be in the public interest.
The CRTC, which was only tasked with evaluating the broadcasting elements of the deal, said it included stipulations in its approval because it wants to ensure the deal will benefit Canadians and the broadcasting system. from the country.
In separate statements late Thursday, Rogers and Shaw welcomed the regulator’s approval.
“This approval is an important milestone and brings us closer to completing our transformational transaction with Shaw,” Rogers President and CEO Tony Staffieri said in a statement.
27.2 million to initiatives and funds
The CRTC requires in particular that Rogers contribute up to 27.2 million to various initiatives and funds, an amount five times higher than that which the company had initially proposed.
The CRTC’s decision indicates that 80% of this amount will go to the Canada Media Fund, the Independent Local News Fund and certified independent production funds. The remaining 20% will go to initiatives offered by Rogers, including the Broadcasting Accessibility Fund and the Broadcasting Participation Fund.
Rogers must also “build an Indigenous news team of reporters based in all provinces where Rogers provides news content, to deliver Indigenous-led stories for First Nations, Métis and Inuit communities.” .
The company must also report annually on its commitments to increase its support for local news, including employing more journalists at its Citytv stations and producing an additional 48 prime-time specials each year that reflect the local communities.
The CRTC will require Rogers to distribute at least 45 English- and French-language independent services on each of its cable and satellite services to ensure that independent programming services are not disadvantaged in negotiations with Rogers.
Shaw’s home phone, wireless and internet services that Rogers plans to acquire are not subject to CRTC approval, but this part of the transaction between the two telecommunications groups is under review by the Bureau of Competition and Innovation, Science and Economic Development Canada.
The deal faced opposition from competitors and government officials. Ottawa has pledged to block the full transfer of wireless licenses from Shaw to Rogers and the House of Commons Industry and Technology Committee said earlier this month that Rogers’ bid for Shaw should not go ahead, but that if it did, the government should impose conditions on the agreement.
The committee recommended that the affordability and accessibility interests of Canadians take precedence over all other considerations during the regulatory review process.
The CRTC said it received 365 interventions on the deal. About 334 were in favor of the request, 25 were comments on the deal and six were opposed to the deal.
Rivals Telus and BCE also argued that competition and consumer choice would be reduced if the deal goes through.
Vancouver-based Telus said if the merger goes ahead, Rogers would serve about 47% of English-language broadcast subscribers and its network would reach 80% of Canadians.