Rogers Communications and the Competition Bureau failed to reach an agreement on the $26 billion takeover of Shaw Communications during a mediation session.
In a joint statement released Thursday evening, Rogers, Shaw and Quebecor said they were “disappointed” that the mediation session did not result in a negotiated settlement, but they remain committed to closing the deal.
The Competition Bureau tried to block the merger, arguing that it would lead to poorer service and higher prices for consumers.
“The Bureau’s reluctance to engage constructively is unduly delaying lower wireless service prices for Canadian consumers,” the three companies said.
In an emailed response, Competition Bureau spokesperson Jayme Albert confirmed that the mediation session failed to find solutions to the problems identified by the Bureau in this transaction. He also pointed out that the Bureau disagrees with what Rogers, Shaw and Quebecor mentioned in their press release.
In March, the Canadian Radio-television and Telecommunications Commission (CRTC) conditionally approved Rogers’ acquisition of broadcasting services from Shaw, but the deal still needs to get the green light from the Competition and Innovation Bureau. , Science and Economic Development Canada.
Thursday’s result comes just days after Industry Minister Francois-Philippe Champagne imposed new conditions on the deal, specifically targeting the sale of Shaw-owned mobile operator Freedom Mobile. to Videotron, from Quebecor. This part of the transaction is essential for the rest of Shaw’s operations to be purchased by Rogers.
Minister Champagne, whose approval is required for any license transfer, announced Tuesday that Videotron would have to agree to keep Freedom’s wireless licenses for at least 10 years.
He also mentioned that he would “expect to see” prices for wireless services in Ontario and Western Canada drop by about 20%, bringing them back to what is currently offered in Quebec by Videotron.
Quebecor has indicated that it will accept the minister’s conditions, committing to incorporate them into a new version of the transaction. The company agreed to buy Freedom Mobile for 2.85 billion earlier this year.
The next step in the Shaw-Rogers transaction will be public hearings before the Competition Tribunal, which are scheduled to begin Nov. 7 and could last until mid-December.
“We remain committed to completing this series of pro-competitive transactions and are confident of the strength and merits of our case before the Competition Tribunal, including the many benefits these transactions bring to Canadians,” pleaded the three companies.
Rogers hopes to complete the transaction by the end of the year, but could push the deadline to January 31, 2023. The deadline has already been delayed several times.