rogers shaw deal

Factoring in debt, the deal is worth $26 billion. Rogers Communications Inc. announced on Monday that they will be acquiring Shaw Communications Inc. in a deal worth $26 billion. By acquiring fourth-ranked Shaw, Rogers would leapfrog Telus Corp, the current No. Rogers Communications Inc. RCI, +5.73% announced Monday that it has agreed to acquire Shaw Communications Inc. SJR, +2.84% in a $26 billion deal. The deal brings two of the country’s biggest family-founded telecom businesses together, with a combined C$19 billion in annual revenue. The deal is valued at $26 billion. The focus for Rogers, Natale said, will be the ability to scale both the business and a 5G network across the country, as well as increasing connectivity and affordability for Canadians. 2 operator, taking on market leader BCE Inc. Shaw shareholders will … Rogers Communications has signed a deal to buy Shaw Communications in a transaction valued at $26 billion, including debt. The deal has the support of the controlling Shaw Family Trust. The buyout includes debt, Rogers explained, adding that the Shaw Family Trust has “irrevocably” agreed to vote in favour of the deal. (Bloomberg) -- It’s a deal that’s been talked about for decades in Toronto’s bank towers and country clubs: The Rogers and Shaw families should merge their giant cable companies. While Rogers dominates the market for these services in eastern Canada, Shaw dominates out west, with minimal overlap between the two. Rogers is offering Shaw shareholders $40.50 in cash per share, a 70 per cent premium over the share price before the deal was announced. Rogers has agreed to buy Shaw in a $26-billion deal. We ask you to keep your comments relevant and respectful. and Alberta from four to three,” Fan wrote in a note. This advertisement has not loaded yet, but your article continues below. Rogers said it has secured committed financing to cover the cash portion of the deal, while about 60 per cent of the Shaw family shares will be exchanged for 23.6 million Rogers B-class shares. Under the plan, Rogers will pay $40.50 in cash for all of Shaw’s issued and outstanding class A and class B shares. Rogers’ finance chief, Tony Staffieri, said the company was not looking to sell cable firm, Cogeco, in which it owns a 34% stake, or any other assets. Rogers announced Monday it is offering $40.50 in cash per share for Shaw, a 69 per cent premium over closing price of Shaw shares Friday. All quotes delayed a minimum of 15 minutes. The deal will be reviewed by the independent Competition Bureau of Canada, the Canadian Radio-television and Telecommunications Commission, as well as the department of Innovation, Science and Economic Development. The merger would combine two of Canada's largest cable and internet providers. Rogers Communications Inc.'s proposed deal to buy Shaw Communications Inc. is raising questions about how far regulators and elected politicians will … Rogers buys Shaw in $26bn deal March 15, 2021 Tweet ; Canadian multiplay telcos Rogers Communications and Shaw Communications have reached an agreement for Rogers to acquire all of Shaw’s issued and outstanding Class A Shares and Class B Shares in a transaction valued at approximately $26 billion inclusive of approximately $6 billion of Shaw debt. Rogers said it has secured committed financing to cover the cash portion of the deal, while about 60 per cent of the Shaw family shares which will be exchanged for 23.6 million Rogers B … Rogers, whose business is concentrated in the urban centers of Ontario, is also expected to gain from Shaw’s strong presence in the sparsely populated regions of Western Canada and help it double down on its efforts to roll out 5G throughout the country. Rogers Communications Inc. and Shaw Communications Inc. have finally agreed to unite in the deal that’s been speculated about for years. Rogers Communications Inc. has signed a deal to buy Shaw Communications Inc. in a deal valued at $26 billion, including debt. (refini.tv/2OXPb4w), “It’s really too early to speculate on the regulatory outcome overall,” Rogers Chief Executive Officer Joseph Natale said on a conference call. The deal, however, is likely to draw heavy regulatory scrutiny in part because Rogers will also be absorbing Freedom Mobile, which Shaw currently owns. TORONTO -- Rogers Communications Inc. has signed a deal to buy Shaw Communications Inc. in a deal valued at $26 billion, including debt. However, investors and analysts who expected the deal, believe regulatory risks are imminent. Rogers Communications Inc said on Monday it has reached an agreement to acquire Shaw Communications Inc. Posthaste: Five things you need to know about the blockbuster Rogers-Shaw merger, Cogeco spurns Rogers again, calling bid a ‘futile exercise’, Rogers mulls next steps as $8.4-billion Cogeco offer expires, tap here to see other videos from our team. Rogers Communications Inc. announced an agreement Monday to buy Shaw Communications Inc. in a deal valued at $26 billion, including debt. Because the deal will effectively eliminate one of Canada’s four major telecommunications companies, it will need the approval of the innovation, science and economic development ministry, the Canadian Radio-television Telecommunications Commission and the Canadian Competition Bureau. “Shaw was always seen as a solid fourth player in Canada. BCE raked in C$22.9 billion last year, while Telus had C$15 billion in revenue. The deal, if completed, would be the biggest in the Canadian telecoms industry since BCE completed the spinoff of its stake in Nortel Networks in a transaction valued at C$88.7 billion in 2000, according to Refinitiv data. If you don't see it please check your junk folder. See here for a complete list of exchanges and delays. “Rogers wants to get this deal done and appears prepared to address any remedies sought by regulators … let alone an outright sale of Shaw wireless,” Shine wrote in his note to clients. Rogers Communications Inc. would get the means to accelerate the build-out of its 5G wireless network through its acquisition of Shaw Communications Inc. , but if the deal … (Reuters) - Rogers Communications Inc said on Monday it was buying Shaw Communications Inc for about C$20 billion ($16.02 billion) in a deal that would create Canada’s second-largest cellular and cable operator but might attract stiff regulatory scrutiny. This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Even if Rogers is forced to divest its wireless business, a new wireless business emerging in the vacuum would not pose any threat, Fan said. Rogers says it has the support of the Shaw family. In a release early Monday, the pair announced that Rogers will purchase its Calgary-based telecom rival for $40.50 per share in a deal that the Shaw family said it “fully and irrevocably” supports. Rogers Communications Inc. has made its long-anticipated move to buy Shaw Communications Inc., offering to acquire the telecom company for $40.50 per share, or $26 billion including debt. Comments may take up to an hour for moderation before appearing on the site. PostPandemic: How COVID-19 is reshaping Canada, Rogers to buy Shaw in deal worth $26 billion, combining Canada's two largest cable providers. “Western Canada is a major driver of our national economy and together we will have the scale, expertise and commitment to deliver the technology infrastructure needed to keep local communities connected, businesses competitive and attract new investment,” said Joe Natale, president and CEO of Rogers. Rogers has agreed to pay C$40.50 per share in cash for Shaw, which amounts to around C$20 billion and equates to a premium of around 70% on the target’s recent share price. Rogers Communications Inc. has struck a deal to acquire Shaw Communications Inc. for $20.4 billion, a takeover that will reshape the country’s telecom landscape provided it receives regulatory approval. Rogers is offering $40.50 in cash per share of Shaw, a 69 per cent premium over closing price of Shaw shares Friday. Sticking with its pledge of offering affordable wireless plans, Rogers said it would not raise wireless prices for Freedom Mobile customers for at least three years after the closure of the deal. The deal includes debt, and is valued at $26 billion. This report by The Canadian Press was first published March 16, 2021. The offer price of $40.50 … Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Shaw’s class B shares closed at $23.90 on the Toronto Stock Exchange on Friday. Shaw said he sees the deal with Rogers as a natural fit, as the two share similar values when it comes to affordability and ensuring extensive network coverage Canadians can access. This transaction does not get that without regulatory approval. Our Standards: The Thomson Reuters Trust Principles. By continuing to use our site, you agree to our Terms of Service and Privacy Policy. Rogers Communications Inc. announced an agreement Monday to buy Shaw Communications Inc. in a deal valued at $26 billion, including debt. As part of the deal, Rogers will purchase Shaw class A shares and class B shares for CAN$40.50 (US$32.40) each, which represents a 70 percent premium to Shaw's class B share price. “Rogers and Shaw will claim this is good for consumers, but it’s actually going to be very bad for consumers,” said Ambarish Chandra, an economic analysis and policy expert at the University of Toronto. Rogers Communications plans to buy rival Shaw for C$26 billion, a deal that both companies are pitching as a driver of 5G rollout in Canada. REUTERS: Rogers Communications Inc said it agreed to buy rival Shaw Communications Inc for about CUS$20 billion in cash and stock, in its biggest deal aimed at … “Together, the new company will expedite the delivery of critical 5G service to customers across western Canada, from rural areas to dense cities, more quickly than either company could have achieved on its own,” Shaw told callers. The deal will see the head office of the merged companies remain in Calgary and an additional 3,000 jobs will be added in Western provinces, Rogers said. One facet of the business regulators could tackle is the two companies’ wireless coverage, as both have presence in Western Canada. It’s absolutely not going to be good for consumers,” Chandra said, despite potential innovation in the 5G space. 365 Bloor Street East, Toronto, Ontario, M4W 3L4. We encountered an issue signing you up. Some, however, question whether the deal will benefit consumers in the long run, given that there will be fewer competitors in certain markets. There was an error, please provide a valid email address. Rogers and Shaw will each have less future competition to worry about. By acquiring fourth-ranked Shaw, Rogers would leapfrog Telus Corp and take on market leader BCE Inc in the highly competitive Canadian telecommunications industry. Rogers said Freedom Mobile customers will be safe from wireless price increases for at least three years after the deal closes, but it remains to be seen if that will be enough for regulators. Rogers seeks to buy Shaw in deal valued at $26B U.S. sends team to Detroit to investigate Tesla-semi crash Blockbuster Rogers-Shaw deal helps lift TSX to new record, U.S. stock markets up • Email: bbharti@postmedia.com | Twitter: biancabharti. Adam Shine, an analyst at National Bank of Canada, said he is confident in Rogers’ ability to secure government approval. © 2021 Financial Post, a division of Postmedia Network Inc. All rights reserved. Rogers Communications Inc. has struck a deal to acquire Shaw Communications Inc. for $20.4 billion, a takeover that will reshape the country’s telecom landscape provided it receives regulatory approval. Rogers Communications Inc. announced Monday it would acquire Calgary-based Shaw Communications Inc. in a $20.4-billion deal that will reshape the country’s telecom landscape, giving Toronto-based Rogers broad access to markets in Western Canada. — With files from … Scotiabank analyst Jeff Fan said the transaction could be a boost for all players in the wireless sector, provided it goes through without major divestitures. We apologize, but this video has failed to load. “We’re committed to getting this transaction done. “But we feel confident this transaction will be approved.”. Shaw shares jumped 42% to C$34, but traded well below the offer price of C$40.50, suggesting doubts about the deal, which is valued at C$26 billion including debt. On March 15, the Canadian telecom giant Rogers Communications revealed its intentions to acquire its smaller home market peer Shaw Communications in a $26 billion deal… We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. “There will be less competition in the wireless and cable internet markets in Canada. Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc. A welcome email is on its way. Rogers Communications Canada ’s Rogers Communications is buying competitor Shaw Communications in a deal worth CAD$26 billion ($20.8 billion). Please try again. Toronto-based Rogers also said it planned to spend C$2.5 billion on ramping up 5G networks in Western Canada over the next five years following its acquisition of Calgary-based Shaw. Read more: Rogers shakes up Canada cable sector with $16 billion Shaw deal Canada is expected to start a 3500 MHz spectrum auction June 15, a key component in the expansion of 5G telecom services. Shares of Rogers were also up 7% at C$64. The purchase of the Calgary-based telecommunications company would give Rogers a bigger national footprint with deeper access to the West and a national wireline network, according to analysts assessing the transaction, while Rogers itself touted the potential for $1 billion in synergies. Rogers Communications has signed a deal to buy Shaw Communications in a transaction valued at $26 billion, including debt. The next issue of Top Stories Newsletter will soon be in your inbox. Brad Shaw, and another director to be nominated by the Shaw family — which will become one of the largest Rogers shareholders — will be named to the Rogers board. Read more about cookies here. Canadian Innovation Minister Francois-Philippe Champagne said the review would focus on “affordability, competition, and innovation.”. Natale said he wouldn’t divulge the details of nascent talks between the company and regulators, but did say “we feel confident in our ability to strike a good and balanced regulatory outcome.”. Unauthorized distribution, transmission or republication strictly prohibited. In-depth reporting on the innovation economy from The Logic, brought to you in partnership with the Financial Post. Visit our Community Guidelines for more information and details on how to adjust your email settings. It’s our responsibility to make that happen,” Natale said. Canada’s telecoms industry came under the spotlight during the last federal election, with voters complaining about cellphone bills, which are among the highest in the world. Rogers … The deal is in cash except for 60% of the Shaw family shares that will be exchanged for shares of Rogers and make the Shaw family one of the … Reporting by Eva Mathews in Bengaluru, David Ljunggren in Ottawa and Maiya Keidan in Toronto; Writing by Subrat Patnaik; Editing by Shailesh Kuber and Anil D’Silva. When you’re talking about taking out that fourth player, I do see that there are some regulatory risks for this,” said Stephen Duench, portfolio manager at AGF Investments, whose firm owns shares in both companies. Rogers chief executive Joe Natale said this week that it was too early to speculate on whether the companies will need to divest from any operations, but said executives from Shaw and Rogers are "going to sit down with regulators and just work through the pieces" until the deal is approved. In March last year, Prime Minister Justin Trudeau’s minority Liberal government ordered Canada’s top three top telecom operators, which together control 89.2% of the market, to cut prices on their mid-range wireless service plans by 25% within two years or face regulatory action. “We believe the transaction, as it is structured without any wireless concessions, is a positive for the wireless industry as it consolidates the number of wireless operators in Ontario, B.C. Rogers plans to invest $2.5 billion in 5G networks in Western Canada, and will create a $1 billion fund to expand high-speed internet access in Indigenous communities, rural … Rogers Communications Inc said on Monday it has reached an agreement to acquire Shaw Communications Inc. Photo by Reuters Article content. “We are proud to join forces with the Shaw family and team.”. Rogers Communications Inc. (TSX:RCI) is acquiring Shaw Communications Inc. (TSX:SJR) in a deal that sees the big player paying $20 billion and taking on $6 billion of the latter’s debt. As part of the deal, Shaw CEO Brad Shaw will take up a seat on Rogers’ board of directors and the Shaw family will pick an additional director to sit on the board. In a massive deal, Rogers Communications Inc. has announced that they have an agreement to buy Shaw Communications.

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