Make Kitco Your Homepage

Rogers, Shaw sign agreement to sell Freedom Mobile to Quebecor

Kitco News

Aug 12 (Reuters) - Rogers Communications Inc (RCIb.TO) and Shaw Communications Inc (SJRb.TO) have finalised an agreement to sell Freedom Mobile to Videotron, a unit of Quebecor Inc (QBRb.TO), the companies said on Friday, paving the way for a merger of Canada's biggest telecom companies.

Canada's antitrust agency blocked Rogers' C$20 billion acquisition of Shaw in May saying it would lessen competition in the country's concentrated telecoms market, where customers pay among the highest bills. read more

Rogers and Shaw had offered the sale of Freedom Mobile, a Shaw unit, as a way to allay competition concerns.

"This agreement with Quebecor brings us one step closer to completing our merger with Shaw," Rogers Chief Executive Tony Staffieri said on Friday.

Terms of the deal, which include Freedom Mobile's branded wireless and internet customers, infrastructure, spectrum and retail sites, were in line with the terms agreed in June, when Quebecor agreed to buy Freedom Mobile in a C$2.85 billion deal.

The development comes after Rogers last month opposed a request from regulators for more time to probe the Freedom Mobile sale to Quebecor. read more

Canada's competition bureau did not immediately respond to a request for comment.

Reporting by Akash Sriram, Nivedita Balu and Chavi Mehta in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.