(Reuters) – Canada’s Commissioner of Competition will oppose Rogers Communications Inc’s C$20billion ($16billion) merger with Shaw Communications Inc., both companies stated in a statement released early Saturday.

On Friday, the Commissioner of Competition informed the companies that it intended to oppose the merger by filing applications at the Competition Tribunal.

The companies have proposed full divesture of Shaw’s wireless business, Freedom Mobile, to address concerns regarding the possible impact of the merger deal on Canada’s competitive wireless market.

The companies stated that Shaw and Rogers are involved in a sale of Freedom Mobile to address concerns expressed by ISED and the Commissioner of Competition.

Rogers, which announced it would buy Shaw last year, was Canada’s largest cellular and cable operator. However, analysts and investors felt that there were significant regulatory risks.

On Friday, Globe and Mail reported that Rogers had asked Quebecor Inc. to participate in a bid for Shaw’s Freedom Mobile.

Rogers refused to comment on Globe and Mail’s report.

($1 = 1.2905 Canadian dollars)