Shaw shares fall as regulator opposes Rogers merger. But deal might not be dead

Click to play video: 'BC Supreme Court rules in Edward Rogers favour'
BC Supreme Court rules in Edward Rogers favour
A BC Supreme Court Justice has handed effective control of Rogers Communications to the son of the founding family, giving Edward Rogers the power to replace five independent directors without holding a shareholder meeting. The Rogers family has been at war with itself over the fate of the multi-billion dollar company, which plans a takeover of Calgary-based Shaw Communications in a deal that would reshape Canada's cable and wireless markets. Paul Johnson reports – Nov 5, 2021

Shares in Shaw Communications Inc. fell in early trading after the company and Rogers Communications Inc. said the Commissioner of Competition plans to block their merger.

Rogers and Shaw said late Friday they were informed that the commissioner intends to file applications to the Competition Tribunal in a bid to prevent the $26-billion merger.

The companies say they remain committed to the deal and have offered to address the competition concerns.

RBC Capital Markets analyst Drew McReynolds says he believes the probability of the deal ultimately getting approval remains high.

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McReynolds says he believes changes to the deal can be made and that the Competition Bureau is focused on the nature of the remedy package.

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Shaw shares were down $2.99 or about eight per cent at $34.57 in early trading on the Toronto Stock Exchange. Rogers has agreed to pay $40.50 per Shaw share.

Click to play video: 'NDP opposed to Rogers-Shaw merger, Singh says'
NDP opposed to Rogers-Shaw merger, Singh says

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