The acquisition deal between Rogers and Shaw has been finalized for a total cost amounting to $20 billion. It underwent a two-year regulatory review, and was approved by Ottawa last week, putting an end to the period filled with uncertainty, reported Bloomberg.
“This is a momentous day for our customers, who will benefit from the latest services and network technology, and for our teams, who have worked so hard to get us here,” said Rogers CEO Tony Staffieri in a press release.
“We’re proud to bring together these two iconic companies to deliver more value, more connectivity, and more innovation for Canadians.”
The Industry Minister, Francois-Philippe Champagne, approved the acquisition on Friday by authorizing the transfer of wireless licenses owned by Freedom Mobile, a subsidiary of Shaw, to Quebecor Inc.’s Videotron, which is the last regulatory requirement for the primary agreement to proceed.
In June 2022, Rogers and Shaw reached an agreement to sell Freedom Mobile to Videotron for $2.85 billion. The sale was finalized on Monday, as a response to competition concerns that were raised by the original proposal.
As part of the approval process, 21 conditions were outlined by Champagne for Rogers and Videotron to follow. These include the establishment of a second headquarters in Calgary by Rogers and the addition of 3,000 new jobs in Western Canada.
It must also spend $5.5 billion to expand 5G coverage and additional network services, as well as a further $1 billion to connect rural, remote, and Indigenous communities.
Videotron must offer plans that are at least 20 percent lower than its competitors and spend $150 million over the next two years to upgrade Freedom Mobile’s network.
If Rogers breaches its conditions, it must pay up to $1 billion in damages. Videotron would potentially be subject to $200 million in penalties if it fails to meet its commitments.
“We are very pleased to be closing the acquisition of Freedom Mobile today, bringing its Canadian footprint as well as the expertise and experience of its employees into our fold,” said Quebecor president and CEO Pierre Karl Péladeau in a press release.