Shaw Communications

History

2021: Rogers Communications bought Shaw Communications for $16 billion

In mid-March 2021 Rogers Communications , she announced the purchase of Shaw Communications for $16 billion. According to experts, the deal may be interrupted by regulatory authorities, which fear the unification of the largest the Canadian telecom companies and a sharp increase in telephone accounts.

If the deal is closed, Rogers Communications will become the second largest cellular and cable operator in Canada. However, analysts and fund managers note that closing the transaction will be very difficult due to the position of the government. To achieve its goal, Rogers Communications even pledged to support affordable wireless plans with mobile operator Shaw Freedom Mobile for three years and invest $2.5 billion over the next five years in building a 5G network in Canada's western provinces.

Rogers Communications acquired Shaw Communications for $16 billion

This is the second attempt in six months by Rogers Communications to consolidate the telecommunications market in Canada, where the three leading operators control about 90% of the market. Rogers Communications' attempt to buy Cogeco's Canadian assets was rejected by Cogeco's top shareholder in September 2020.

According to analysts at BMO Capital Markets, in Ontario, Alberta and British Columbia, where 67% of the Canadian population live, the growth of consolidation in the wireless business is becoming a serious cause for concern. A possible solution may be the sale of part of the assets after the merger of Rogers and Shaw Communications. However, the companies did not comment on this issue.

Rogers Communications is expected to want to get rid of some assets in the east of the country, as the deal will allow it to actively engage in infrastructure and the deployment of the 5G network in Canada's western provinces.^[1]

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