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Exclusive-Bell, Telus lobby Canada to stop sale of Shaw’s wireless business to Quebecor -sources -Breaking

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© Reuters. FILE PHOTO – The Shaw Communications logo can be seen in their Calgary office, Alberta, Canada on April 17, 2019. REUTERS/Chris Wattie

David Ljunggren, Divya Raghagopal

TORONTO, (Reuters) – The Canadian federal government should stop Quebecor buying Shaw Communications’ (NYSE:), wireless business. Telus and Bell Inc sent separate letters to both the government of Canada, according to people familiar with this matter.

The sale of Shaw’s wireless company to Quebecor was seen as a solution to antitrust concerns posed by Rogers Communications (NYSE:) Communications proposed C$20billion ($15.6billion) acquisition Shaw. Bell and Telus opposed the sale of Shaw’s wireless business to Quebecor in letters. This was because Quebecor had a history not using government resources, including spectrum that it obtained.

These companies claim that this is against the spirit of competition which Freedom Mobile has been sold to, according to the sources.

Reuters was informed last week by a source within the federal government that Quebecor Inc, based in Montreal, is a potential buyer for Freedom Mobile’s unit. Rogers is looking to sell the unit in order to win Shaw’s bid. Rogers attempted to purchase Shaw’s Calgary-based business. Canada’s antitrust regulator has disapproved of this deal. It claimed that it would decrease competition in the wireless market, in which Canada has the most expensive wireless rates. Rogers Shaw also declined to offer Freedom mobile buyers because they were not competive.

Bell and Telus declined comment. Canada’s Industry Ministry has not yet made any comments. Quebecor wasn’t available to comment right away.

Except for the bureau, approval is required from Canada’s Ministry of Innovation, Science and Economic Development.

As the information is private, sources could not be identified.

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