- Rogers Communication, Inc RCI and Shaw Communications Inc SJR agreed to the sale of Freedom Mobile Inc to Quebecor Inc QBCRF subsidiary Videotron Ltd.
- The financial terms of the transaction remain undisclosed.
- The transaction holds the potential to create a strong fourth national wireless services provider. It addresses the concerns raised by the Commissioner of Competition and the Minister of Innovation, Science, and Industry regarding the Rogers-Shaw Transaction.
- With this agreement, the new combined business of Videotron and Freedom will be well-positioned to launch a strong, competitive national 5G offering using Videotron's 3500 MHz holdings.
- Accordingly, the parties believe the Rogers-Shaw Transaction should now be approved.
- "This Agreement with Quebecor brings us one step closer to completing our merger with Shaw," said Tony Staffieri, President, and CEO of Rogers. "We strongly believe that this divestiture solution addresses the concerns raised by the Commissioner of Competition and the Minister of Innovation, Science, and Industry, and we look forward to securing the outstanding regulatory approvals for our merger with Shaw so that we can start delivering its significant long-term benefits to Canadian consumers and businesses, including improved network resiliency."
- Last year Rogers Communications agreed to acquire Shaw Communications for C$40.50 per share in a deal worth C$26 billion, implying a 70% premium.
- Price Action: RCI shares traded higher by 0.98% at $46.42 on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in
