Another step forward for the pending TELUS/Mobilicity acquisition. Justice Colin Campbell of the Ontario Superior Court of Justice has given the go-ahead and approved TELUS’ $380 million acquisition of financially-troubled Mobilicity under the Canadian Business Corporations Act.
According to the press release, David Fuller, TELUS Chief Marketing Officer said, “Today’s court decision takes us another important step closer to completing this acquisition, which will allow TELUS to save the jobs of Mobilicity’s 150 employees and continue service for their 250,000 customers without the disruption that company’s current financial issues could cause.”
TELUS and Mobilicity are aiming for the deal to close by June 10th, but will be fighting a tougher battle as they will now need to convince both the federal government and the Competition Bureau to approve the deal. Industry Minister Christian Paradis previously stated that “the government will take the time required to review the proposal carefully.” The issue at hand is a limitation on license transfers between incumbents and new entrants, due to expire early next year. TELUS argues that such a delay could derail the entire deal and potentially send Mobilicity into bankruptcy, risking the jobs of its 150 employees.