'Over 95%': Analysts see odds rising for Rogers-Shaw deal amid Freedom sale

Rogers Communications' plan to sell Freedom Mobile to Quebecor has given Bay Street more reason to believe the $20-billion takeover of Shaw Communications will clear the two major remaining regulatory hurdles.

Rogers has been trying for more than year to secure all necessary approvals to close its takeover of Shaw, which would mark a major expansion in Western Canada for the Toronto-based telecommunications giant. It agreed to buy Shaw in March 2021 for $40.50 per share.

However, Competition Commissioner Matthew Boswell has dug in his heels in objecting to the takeover of Shaw. His opposition is heading to a quasi-judicial hearing before the Competition Tribunal later this year if Rogers can’t assuage the competition watchdog's concerns sooner.

Rogers President and Chief Executive Officer Tony Staffieri struck an optimistic tone late Friday when the proposed sale of Shaw's Freedom wireless business to Quebecor was announced. "Our agreement with Quebecor to divest Freedom is a critical step towards completing our proposed merger with Shaw. ... This agreement between proven cable and wireless companies will ensure the continuation of a highly competitive market with robust future investments in Canada's world class networks," he said.