Rogers Communications to sell Freedom Mobile to Quebecor Inc. for $2.85B
Global News
Freedom Mobile will be sold to Quebecor Inc. for $2.85 billion in an effort to address the concerns of federal regulators about its proposed takeover of Shaw Communications.
Rogers Communications Inc. says it will sell Freedom Mobile Inc. to Quebecor Inc. for $2.85 billion in a deal it hopes will appease the concerns of federal regulators about its proposed takeover of Shaw Communications.
The Competition Bureau has been seeking to block the Shaw merger over concerns it would substantially prevent or lessen competition in wireless services.
Rogers, Shaw and Quebecor say in a release Friday that they believe their agreement would effectively address those concerns and ensure the presence of a strong and sustainable fourth wireless carrier across Canada.
Under the terms of the agreement, Quebecor would buy all of Freedom’s branded wireless and internet customers as well as all of Freedom’s infrastructure, spectrum and retail locations in a move that would expand Quebecor’s wireless operations nationally.
The deal is subject to regulatory approval.
Tony Staffieri, president and CEO of Rogers, says the agreement with Quebecor to divest Freedom is a critical step toward completing its proposed merger with Shaw.
“We strongly believe the divestiture will meet the Government of Canada’s objective of a strong and sustainable fourth wireless services provider,” Staffieri said in a release.
“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.”