Shaw, Rogers and Quebecor before the Competition Tribunal
The merger between Shaw and Rogers was announced on March 15.
The mediation process with Rogers and Shaw before the Competition Bureau to conclude the $26 billion transaction has failed.
The federal agency feared that this transaction would lead to a breakdown of competition in the telecommunications sector.
From now on, it is the Competition Tribunal that will have to decide.
The mediation did not result in a negotiated settlement, reads a joint statement from Rogers, Shaw and Quebecor.
“We are disappointed with this outcome and believe this litigation is both unnecessary and harmful to competition. The Bureau's reluctance to engage constructively is unduly delaying lower wireless prices for Canadian consumers. »
— Excerpt from press release
In an emailed reaction to The Canadian Press, Competition Bureau spokesperson Jayme Albert confirmed that the mediation session was unsuccessful and that the Bureau is in disagree with the statements of Rogers, Shaw and Quebecor in their press release.
Rogers and Shaw announced their intention to merge on March 15.
Faced with the concern of the Competition Bureau, Shaw and Rogers conceded the resale of Freedom's wireless license to Videotron (Quebecor). However, the Competition Bureau still had reservations; fears included a deterioration in service and higher prices for consumers.
On Tuesday, Innovation Minister François-Philippe Champagne set conditions for the transaction between Rogers and Shaw be concluded.
Videotron must retain Freedom's wireless license for 10 years. And prices for wireless services in Ontario and Western Canada needed to drop by about 20% to bring them into line with Videotron's current Quebec offerings, Champagne insisted.
In the evening, a press release from the CEO of Quebecor, Pierre Karl Péladeau, announced that he accepted the minister's conditions and undertook to incorporate them into the new version of the transaction.
Several analysts considered that the conditions laid down by the minister bode well for the conclusion of the transaction.
By elsewhere, the transaction must be ultimately approved by the Minister of Innovation.
The next step in the Shaw-Rogers transaction will be public hearings before the Competition Tribunal, which are scheduled to begin November 7 and could last until #x27;in mid-December.
With information from La Presse canadienne