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Rogers-Shaw deal approval likely to drag into summer 2023: analyst

Click to play video: 'Rogers extends deadline to finalize Shaw takeover, expects spending of $150M on customer credits'
Rogers extends deadline to finalize Shaw takeover, expects spending of $150M on customer credits
WATCH: Rogers extends deadline to finalize Shaw takeover, expects spending of $150M on customer credits – Jul 27, 2022

As Rogers Communications Inc. aims to close its $26-billion proposed takeover of Shaw Communications Inc. by the end of this year, one telecom watcher says the process could drag on into mid-2023.

Scotiabank analyst Maher Yaghi says pushback from the Competition Bureau and uncertainty around the proposed sale of Shaw-owned wireless carrier Freedom Mobile to Quebecor Inc., a move meant to appease federal regulators, could slow things down.

Read more: Rogers tells CRTC Shaw deal will boost competition, makes no promises on prices

Canada’s competition watchdog has been trying to block the deal, arguing that it will lessen competition substantially and lead to higher phone bills.

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Rogers and Shaw are expected to appear before the Competition Tribunal in November where they will try to overturn the Competition Bureau’s opposition to the transaction.

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Click to play video: 'Rogers outage spawns lawsuit, questions about compensation, competition'
Rogers outage spawns lawsuit, questions about compensation, competition

Yaghi says “the odds are increasing that it will take a full trial, and possibly a further appeal,” which could make the path to closing the transaction even longer.

Last month, Rogers extended the proposed deal’s closing date to Dec. 31, with the option to extend it to Jan. 31, 2023, after moving it several times.

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