Canada’s telecom sector created headline noise on March 21, 2023, when Rogers Communications (TSX:RCI.B) agreed to buy rival Shaw Communications. Industry giants BCE and TELUS howled and opposed the $26 billion transaction, including debt.
Shaw shareholders approved the proposed sale, but it was a gruelling road for Rogers because of regulatory hurdles. The Canadian Radio-television and Telecommunications Commission (CRTC), Competition Bureau, and Innovation, Science and Industry Minister François-Philippe Champagne were the obstacles.
After several deadline extensions and mediations, Rogers announced the takeover of Shaw with finality on April 3, 2023. RBC Capital Markets said the done deal ushered in a new era of competition. As of this writing, Rogers ($27.4 billion) is the third-largest player in the oligopoly by market cap, after BCE ($34.4 billion) and TELUS ($31.8 billion).
RCI.B hovered around $60 before the merger….
