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Rogers agrees with Canada’s competition bureau to put Shaw merger on hold -Breaking

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© Reuters. FILEPHOTO: On October 22nd, 2021, a person strolls near Rogers Communications in Toronto, Ontario Canada. REUTERS/Carlos Osorio/File Photo

TORONTO (Reuters) – Rogers Communications Inc said Monday that it would not close the proposed purchase of Shaw Communications for C$20 billion (C$15.8billion) until the company has reached a deal with either the competition bureau, or the verdict from the tribunal.

Rogers (NYSE 🙂 indicated that it was open to a settlement but did not accept the bureau’s conclusion of rejecting it. It said, however, it will challenge the decision.

“Today’s agreement with the Commissioner allows the parties to focus on addressing the Commissioner’s concerns with the Transaction in order to reach a settlement,” said Rogers spokesperson in a statement.

Rogers agreed that they would not enforce any agreement that was connected to this transaction because it could “limit operation, maintenance enhancement or expansion Shaw Wireless Services business”.

Canada’s Competition Bureau has blocked the merger and asked the Tribunal to stop it, claiming that the transaction would reduce competition in the telecom industry.

Rogers would have to submit a reply to the challenge from Tuesday. According to experts, Rogers will have more time to negotiate a deal with the bureau.

Canadians need to have access to high-quality, affordable wireless services. Vigorous competition is vital. I’m pleased this case can now move quickly towards a hearing before the tribunal, said Matthew Boswell, commissioner of competition.

($1 = 1.2655 Canadian dollars)

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