Tony Staffieri confident Rogers-Shaw merger will close

Staffieri shared details in an interview with The Globe and Mail

Rogers and Shaw logos on an iPhone

The Rogers-Shaw merger has faced several roadblocks, but Rogers CEO Tony Staffieri’s confidence isn’t wavering.

In an interview with The Globe and Mail, Staffieri is “confident the deal will close” despite the Competition Bureau’s work to block it. The bureau originally filed its application in May, stating the merger will lead to higher cellphone bills for Canadians, among other issues.

In order to sway the bureau, Rogers stated it will sell Freedom Mobile, Shaw’s wireless business, to Quebecor to increase competition. “Quebecor will have a better cost structure than they would have had on their own,” Staffieri said.

However, the Competition Commissioner doesn’t agree with that logic. Documents filed by the commissioner in September label the transaction as anti-competitive.

“The sale of Freedom “fails to eliminate the substantial lessening and prevention of competition the proposed transaction will cause,” the document states.

Mediations will begin this week. If talks fail, as they previously have, a hearing will be held next month.

Source: The Globe and Mail