Canada’s Competition Tribunal says it approved Rogers Communications Inc.’s $20-billion takeover of Shaw Communications Inc. because it expects that the sale of Shaw’s Freedom Mobile to Videotron Ltd. will create a “more aggressive and effective” wireless competitor.
Last week, the tribunal dismissed an application by the Competition Bureau seeking to block the merger of Canada’s two largest cable companies, saying that the deal is not likely to result in higher cellphone bills or other anti-competitive effects, such as poorer service.
In its detailed reasons, posted online Monday, the tribunal outlined how it arrived at its decision to allow the takeover.
The Competition Bureau has already appealed the ruling and applied for an injunction that, if granted, would prevent the deal from closing until the case can be heard. The watchdog says in its notice of appeal, filed on Friday, that the tribunal made legal errors in its rush to issue a judgment.
The Federal Court of Appeal on Sunday temporarily suspended the tribunal’s decision on what it calls an “emergency basis” until it can hear and decide on the bureau’s application for an injunction.
A spokesperson for the Competition Bureau said the watchdog is “carefully reviewing” the decision and reasons released by the tribunal.
“We remain very disappointed by the Competition Tribunal’s decision to dismiss our application against Rogers-Shaw,” Jayme Albert said in a statement.
More to come
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