Rogers merger with Shaw to trigger ‘billions in investment’

After protracted negotiations with regulators, Canadian telco giant Rogers Communications and Shaw Communications have finally completed their long-awaited merger. The companies said the merger will “create one national cable, media, and wireless company” unlocking “billions in investment”.

Tony Staffieri, president and CEO, Rogers, called it “a momentous day for our customers, who will benefit from the latest services and technology, and for our teams, who have worked so hard to get us here. We’re proud to bring together these two companies to deliver more value, more connectivity, and more innovation.”

The merger brings together Canada’s largest 5G network with a coast-to-coast wireline company with fibre-powered internet available to nearly 70% of Canadian homes. Announcing the deal, the company said: “Together, we will bundle more products to more Canadians, including everything from internet, TV, phone, and smart home monitoring; to wireless services; credit card offers; sports and media content.”

Staffieri said: “We plan to bring together our products and services for Canadians in a way we never have before. This is a business of scale, and we can now deliver even more value for consumers and businesses on Canada’s largest network.”

Regulators were initially resistant to the prospect of the Canadian mega-merger, but Rogers insists the deal will benefit consumers. Over the next five years it plans to invest $6.5 billion in a range of network improvements. It also says it will connect more low-income Canadians and make 5G services more affordable. In total, it expects to add $7 billion in GDP to Western Canada, in that time period, creating 3,000 jobs.

As part of the Rogers-Shaw deal, Videotron-owned Quebecor in French-speaking Quebec closed the acquisition of Freedom Mobile from Shaw. This transaction had to be made to allay anti-competition concerns raised by Canadian regulators