Canada's antitrust tribunal clears C$20 billion Rogers-Shaw deal

let atwWrapper,atwContainerWidth,atwSliderBox,atwTotalWidth; function initATWSlider() { atwWrapper = $('.relatedInstruments'); atwSliderBox = atwWrapper.find('.slider'); atwContainerWidth = atwWrapper.width(); atwTotalWidth = atwSliderBox.width(); if(window.domainId === '2' || window.domainId === '3'){ atwWrapper.find('.sliderRight').addClass('js-slider-prev'); atwWrapper.find('.sliderLeft').addClass('js-slider-next'); } else { atwWrapper.find('.sliderRight').addClass('js-slider-next'); atwWrapper.find('.sliderLeft').addClass('js-slider-prev'); } if(atwSliderBox.find('.instrumentBox').length > 6){ atwWrapper.find('.js-slider-next').fadeIn(600); } } function atwMoveRight() { atwWrapper.find('.js-slider-prev').fadeIn(150); $(".slider > :visible:first").hide(150) $(".slider > :visible:last").next().show(150); if(!$(".slider > :visible:last").next().find('.name')()){ atwWrapper.find('.js-slider-next').fadeOut(150); return; } } function atwMoveLeft() { atwWrapper.find('.js-slider-next').fadeIn(150); $(".slider > :visible:last").hide(150); $(".slider > :visible:first").prev().show(150); if(!$(".slider > :visible:first").prev().find('.name')()){ atwWrapper.find('.js-slider-prev').fadeOut(150); return; } } initATWSlider(); //update star icon on adding/removing instrument to/from specific watchlist atwWrapper.on('click', 'label.addRow', function() { let parent = $(this).parent(); let checkedPortfolio = false; parent.find('input[type=checkbox]').each(function () { if($(this).is(':checked')){ checkedPortfolio = true; } }); let closestStar = $(this).closest('.addToPortWrapper').find('.star'); if(checkedPortfolio){ closestStar.addClass('added'); }else{ closestStar.removeClass('added'); } }); //update star icon on creating new watchlist atwWrapper.find('.js-create-watchlist-portfolio').find('a.js-create').on('click',function () { let parent = $(this).parent(); let watchlistName = parent.find('input[type=text]').val(); if(!watchlistName){ return; } let star = $(this).closest('.addToPortWrapper').find('.star'); star.addClass('added'); }); //update star icon on adding new position atwWrapper.find('.js-create-holdings-portfolio').find('.js-submit').on('click',function () { let addPositionForm = $(this).closest('.addToPortfolioPop').find('.holdingsContent'); let amount = addPositionForm.find('.js-amount').val(); if(amount < 1){ return; } let star = $(this).closest('.addToPortWrapper').find('.star'); star.addClass('added'); }); atwWrapper.find('.instrumentBox').find('.shortInfo').on('click',function () { if(!window.ga){ return; } let pairId = $(this).parent().find('.js-add-to-portfolio').attr('data-pair-id'); let pairType = window.atwPairTypes[pairId]; window.ga('allSitesTracker.send', 'event', 'content', 'symbol link clicked', '', { "dimension147":"symbol_link_clicked", "dimension163":"click", "dimension148":"symbol", "dimension162":"content add to watchlist", "dimension161":"article page", "dimension142":"article", "dimension75":pairType, "dimension138":pairId, "dimension118":"2971244" }); window.open($(this).attr('data-href')); }); window.atwPairTypes = {"20551":"Equities","21136":"Equities"};

By Divya Rajagopal and Akriti Sharma

(Reuters) -Canada's antitrust tribunal approved Rogers (NYSE:ROG) Communications Inc's C$20 billion ($14.77 billion) bid for rival Shaw Communications (NYSE:SJR) Inc, ending months of uncertainty over the merger that would create the country's second largest telecom firm.

The ruling late on Thursday dismissed the Commissioner of Competition's plea to oppose the merger, which has been seen as a test case for the country's ability to foster competition during consolidation worries in sectors ranging from telecoms to banks.

Analysts are now counting the days before the merger formally closes. Rogers-Shaw and Quebecor await approval from Industry Minister François-Philippe Champagne to transfer Freedom Mobile Inc's spectrum license to Videotron.

Champagne had in October hinted his intention to approve the sale as long as Videotron holds Freedom Mobile's assets for at least 10 years and keeps prices comparable to current levels in Quebec, which are 20% lower than in Ontario and Western Canada.

Canada's concentrated telecoms market has the highest wireless bills in the world for consumers, according to Rewheel, a Finnish telecom research firm.

Rogers might have to pay an approximately C$260 million consent fee to its bond holders if the deal does not close by Dec. 31, 2022, said Adam Shine, a telecom analyst with National Bank of Canada (OTC:NTIOF).

"It remains to be seen if the companies can close their deals on Saturday within about two days of notice of the Tribunal's decision," said Shine in a research note, adding they will need quick movement from the government.

The two companies and the competition bureau battled at the tribunal after the bureau rejected Shaw's proposal to sell Freedom Mobile to rival Quebecor Inc's Videotron unit for C$2.85 billion to facilitate the deal.

The bureau said Quebecor would not be a viable competitor to a merged Rogers-Shaw. However, in its Thursday ruling, the tribunal said acquiring Freedom Mobile would allow Videotron to expand in new markets and ensure robust competition.

The Rogers-Shaw merger after the sale of Freedom Mobile would not be likely to prevent or lessen competition, the tribunal said, or lead to "materially higher" prices or a decline in quality of service.

"I am very disappointed that the Tribunal is dismissing our application to block the merger between Rogers and Shaw," said Matthew Boswell, Commissioner of Competition.

"We are carefully considering our next steps."

The antitrust commissioner could still appeal after the tribunal details its decision over the next couple of days.

The two companies said they would now work for government approval for the deal that was announced in March 2021 when the Alberta-based Shaw family decided to sell the company to Rogers for C$40.5 per share.

"The deal will receive all necessary approvals. The objection by the Competition Bureau was the main hurdle to overcome," Cormark Securities analyst David McFadgen said.

He said there are "significant" revenue synergies for Rogers from bundling services, while Quebecor has better growth prospects from the Freedom Mobile deal.

Shaw's shares surged nearly 10% on the Toronto Stock Exchange, while Rogers was up more than 4%. Quebecor was up 3% on Friday.

($1 = 1.3544 Canadian dollars)