The companies have proposed a full divestiture of Shaw’s wireless business, Freedom Mobile, to address concerns about the transaction’s anti-competitive effects in the wireless market.
“The proposed divestitures will not eliminate the substantial lessening or prevention of competition resulting from the proposed transaction,” Competition Commissioner Matthew Boswell said in a Competition Tribunal filing. competition, had already declared its opposition to the merger for competition reasons. His last statement relates specifically to the issue of the proposed surrender.
The new owners of Freedom Mobile would be “likely to provide less effective financial, managerial, technical or other support to the wireless company,” Boswell said in the filing, which was made public Tuesday.
The transaction could prevent or significantly reduce competition in wireless and business services in British Columbia, Alberta and Ontario, according to the commissioner.
“Shaw remains steadfast in its commitment to complete this transaction, which will bring significant long-term benefits to Canadians, competition, connectivity and the economy,” the company said in a Reuters statement.
She added that “a negotiated settlement that involves the divestiture of our wireless business is the best and most logical outcome.”
Rogers did not immediately respond to Reuters requests for comment.