On March 24, Shaw Communications Inc. said the Canadian Radio-television and Telecommunications Commission’s (CRTC) comprehensive review and approval of the transfer of Shaw’s licensed broadcast distribution undertaking licenses to Rogers Communications Inc. marks an important milestone towards both companies combining successfully.
Brad Shaw, executive chair and CEO of Shaw, commented on the CRTC's ruling:
“We appreciate the CRTC’s thoughtful inquiry and remain committed to working with government and regulators to achieve a successful completion of our proposed transaction with Rogers.
Today’s announcement is a critical milestone in the journey we are taking towards all regulators approving the combination of our two companies. Our team is continuing to work toward completing the thorough regulatory reviews that remain underway to deliver our shareholders the value they expect to receive upon closing, expected to be in the first half of 2022.
Shaw’s employees continue to focus on our near-term priorities, balancing subscriber growth and profitability while investing in our networks and delivering better customer experiences across our businesses.
Together, with Rogers, we all look forward to bringing to Canadians the important benefits of the combined company – including access to high-quality, next-generation networks, increased competition, and greater connectivity to rural, remote and Indigenous communities throughout Western Canada.”
The transaction remains subject to other customary closing conditions including approvals from the Competition Bureau and Innovation, Science and Economic Development (ISED) Canada.
Shaw and Rogers said they will continue to work cooperatively and constructively in order to secure the requisite approvals.
Meanwhile also on March 24, Rogers Communications Canada Inc. also welcomed CRTC approval of the transfer of broadcasting distribution undertaking licenses held by Shaw Communications Inc. to Rogers.
Tony Staffieri, president and CEO of Rogers, commented:
“This approval is an important milestone and brings us one step closer to completing our transformational transaction with Shaw. Together, Rogers and Shaw will accelerate investment in 5G and cable networks across Canada, offer consumers and businesses more choice and competition, and connect rural and remote communities faster than either company could alone.”
The Rogers and Shaw transaction is expected to close in Q2 of 2022. It has been approved by the shareholders of Shaw, the Court of Queen's Bench of Alberta, and now the CRTC, and remains subject to review by the Competition Bureau and the Minister of Innovation, Science and Industry (ISED).
Teams from both Rogers and Shaw continue to work constructively with the Competition Bureau and ISED to ensure they have the information they need to assess the significant benefits the combined company will bring to Canadians and the Canadian economy.
The parties say the combination of Rogers and Shaw "will create a company with the assets and capabilities necessary to make the significant investments in digital infrastructure that Canada needs to create jobs, drive innovation, and lead in the global digital economy."
According to the companies, such benefits will include:
- Investing $2.5 billion to build 5G networks across Western Canada over the next five years;
- Establishing a new $1 billion Rogers Rural and Indigenous Connectivity Fund dedicated to connecting rural, remote, and Indigenous communities across Western Canada;
- Additional $3 billion to support further network, services, and technology investments;
- Offering customers across Western Canada next-generation features, functionalities and services through our industry-leading Ignite platform; and
- Creating up to 3,000 new jobs in Western Canada.