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Rogers-Shaw deal clears major hurdle after Competition Tribunal rules in favour

Click to play video: 'Rogers-Shaw deal future uncertain as feds deny spectrum transfer'
Rogers-Shaw deal future uncertain as feds deny spectrum transfer
WATCH: Ottawa sets new conditions for approving Rogers-Shaw deal, Freedom Mobile sale: Champagne – Oct 25, 2022

The Competition Tribunal has dismissed an application from Canada’s competition watchdog seeking to block Rogers Communications Inc.’s proposed $26-billion purchase of Shaw Communications Inc., clearing a path for the deal to go through.

It still requires approval from Innovation, Science and Economic Development Canada.

In a summary of its decision released Thursday, the Tribunal says the merger of the two telecommunications companies would not result in materially higher prices.

The decision says the deal that includes the sale of Shaw-owned Freedom Mobile to Quebecor-owned Videotron Ltd. would not likely prevent or lessen competition substantially.

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It says a more detailed decision will be released in the next two days.

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The Competition Tribunal held four weeks of hearings to discuss concerns about the proposed deal earlier this year.

Throughout the hearing, the Competition Bureau argued the merger would lessen competition in the telecom market, trigger higher prices and lead to poor service.

Rogers and Shaw argued the deal would enhance competition and be better for consumers.

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

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