Rogers to acquire Shaw in $26 BILLION deal, MPs express concern

Rogers Communications Inc. announced on Monday that they will be acquiring Shaw Communications Inc. in a deal worth $26 billion.

The merger would combine two of Canada's largest cable and internet providers. While Rogers dominates the market for these services in eastern Canada, Shaw dominates out west, with minimal overlap between the two. The combined company will be headquartered in Calgary.

The transaction still requires approval from shareholders, the courts, and regulators to succeed, and Rogers is not sure whether they will be required to divest from any operations to ensure its approval. It may take up to a year for Rogers to receive all the necessary approvals to move forward with the transaction.

"We feel confident this transaction will be approved," said Rogers CEO Joe Natale.

The Shaw family expressed enthusiasm towards the deal, under which they will receive considerable shares of Rogers.

"While unlocking tremendous shareholder value, combining companies also creates a truly national provider with the capacity to invest greater resources expeditiously to build the wireline and wireless networks that all Canadians need for the long term," said Shaw CEO Brad Shaw, who will be joining the Rogers board if the transaction proceeds.

Rogers has also promised to invest $2.5 billion in 5G networks across Canada as part of the deal.

In a statement released following the announcement, Conservative Shadow Minister for Jobs and Industry Pierre Poilievre expressed concern over the potential impacts the deal could have on a competitive market environment.

He also expressed faith in the review process which will determine whether the deal can go through.