Antitrust, eh?

15 March 2021 By Lauren Silva Laughlin Follow @TheRealLSL

Rogers is paying rival Shaw a 69% premium to turn the top four telecoms firms into three. On paper, the buyer is paying too much. But if T-Mobile US-Sprint is a guide, the chance to jointly develop 5G is valuable, if Rogers can stomach the inevitable regulatory horse-trading.

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Rogers Communications said on March 15 it would buy Shaw Communications, Canada’s fourth largest telecommunications firm, for C$20 billion. The companies will pay all shareholders except 60% of the shares held by the Shaw family C$40.50 a share in cash.

The portion of the Shaw family not receiving cash will receive 23.6 million shares of Rogers’ stock at an exchange ratio of 0.7 shares per Shaw share.

T-Mobile US agreed on April 29, 2018 to buy rival Sprint for $26.5 billion in an all-stock transaction. The U.S. Department of Justice and the Federal Communications Commission eventually agreed to the deal on the condition that some Sprint assets were sold to satellite operator Dish Network.

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