Rogers-Shaw deal wins conditional approval from CRTC
BNN Bloomberg
Rogers Communications' takeover of Shaw cleared one of three crucial hurdles Thursday.
Rogers Communications Inc.’s takeover of Shaw Communications Inc. cleared one of three crucial hurdles Thursday.
The Canadian Radio-television and Telecommunications Commission announced in a release after markets closed that it approved the $20-billion deal, subject to certain conditions and modifications.
Among the requirements applied to the deal by the CRTC, Rogers will have to pay $27.2 million in benefits into the broadcasting system, roughly five times what it originally proposed. The regulator also instructed Rogers to provide annual reports on its pledges to bolster local news coverage. As well, the CRTC said it will implement “safeguards” designed to protect independent programming services in negotiations with Rogers.
“Given the nature of this transaction, we have put in place safeguards aimed at addressing potential risks to the broadcasting system for both consumers and programming services. Rogers must honour all existing contracts for Shaw customers. This adds to the safeguards already in place, which allow Canadians to subscribe to a basic television package and to select channels either individually or in small packages," said CRTC Chair and Chief Executive Officer Ian Scott in the release.
The CRTC’s approval was strictly focused on Rogers’ acquisition of Shaw’s broadcasting assets. The takeover still requires the approval of the Competition Bureau and Innovation, Science and Economic Development Canada (ISED).
“We appreciate the CRTC’s thoughtful inquiry and remain committed to working with government and regulators to achieve a successful completion of our proposed transaction with Rogers,” said Shaw Executive Chair and Chief Executive Brad Shaw in a statement.
