Canada’s Rogers & Shaw to Merge

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In a C$26 billion ($20.1 billion) transaction, pay-TV, mobile and broadband provider Rogers Communications is acquiring Shaw Communications.

The deal sees Rogers acquiring all of Shaw’s issued and outstanding Class A Shares and Class B Shares at a price of C$40.50 ($32.50) per share, and about C$6 billion ($4.8 billion) in debt.

The newly combined company has pledged to invest C$2.5 billion ($2 billion) in 5G networks over the next five years across Western Canada. Further, Rogers is establishing a C$1 billion ($800,000) Rogers Rural and Indigenous Connectivity Fund.

“We are proud to join forces with the Shaw family and team as we combine our companies and our 10,000 team members across Alberta, British Columbia, Manitoba, and Saskatchewan, supported by a head office in Calgary,” said Joe Natale, president and CEO of Rogers Communications. “Western Canada is a major driver of our national economy and together we will have the scale, expertise and commitment to deliver the technology infrastructure needed to keep local communities connected, businesses competitive and attract new investment. We’re at a critical inflection point where generational investments are needed to make Canada-wide 5G a reality. 5G is about nation-building; it’s vital to boosting productivity and will help close the connectivity gap faster in rural, remote and Indigenous communities. Fundamentally, this combination of two great companies will create more jobs and investment in Western Canada, connect more people and businesses, deliver best-in-class-services and infrastructure across the nation, and provide increased competition and choice for Canadian consumers and businesses.”

Brad Shaw, executive chair and CEO of Shaw, added, “Our two companies have been successful because of the foresight and vision of two great founders who were driven by their unrelenting pioneering spirit and entrepreneurial values. Without a doubt, my father would be proud of this moment, combining forces with the company founded by his old friend to deliver more Canadians world-class connectivity, more choice, and better value. While unlocking tremendous shareholder value, combining these two great companies also creates a truly national provider with the capacity to invest greater resources expeditiously to build the wireline and wireless networks that all Canadians need for the long term. This transaction will create benefits for generations to come.”

Edward Rogers, chairman of Rogers Communications, noted, “Today’s announcement brings two iconic Canadian family-founded businesses together with the expertise, combined assets and scale to deliver the next generation of telecommunications to Canadian consumers and businesses. This is a transformational combination; and extends our company’s long legacy of innovation, entrepreneurship, and dedication to world-class service for decades to come.”

The deal is subject to approval from Canadian regulators and is expected to close in the first half of 2022.