Federal Court Chief Justice overseeing Competition Tribunal hearing into the proposed $26-billion merger wants to release decision before Christmas
Videotron Ltd. would acquire Shaw’s Freedom Mobile – Canada’s fourth-largest wireless carrier – for $2.85-billion.
The telecoms, meanwhile, have argued that Freedom would be a stronger competitor in Videotron’s hands. During the final days of expert testimony, Mark Israel, a competition economist hired by Rogers, told the tribunal that if Videotron is permitted to acquire Freedom Mobile, the Quebec-based telecom will become a nearly national carrier with “strong economic incentives and assets to compete vigorously.” Those assets include a larger portfolio of spectrum licences.
The tribunal has also heard evidence about the potential cost savings, or efficiencies, that would result from the deal. Canadian competition law allows a merger to close if it generates lower total costs for the combined business, even if it lessens competition. Counsel for the Competition Bureau has attempted to challenge the telecoms’ calculations, noting, for instance, that Mr. Harington did not deduct the retention bonuses that will be paid to Shaw executives from the efficiencies. Those retention payments will cost the company up to $50-million.the merger.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rogers-Shaw merger hearing closes last day of evidence with more expert testimonyThe Competition Bureau has sought a \u0027full block\u0027 of the original Rogers\u002DShaw deal. Read more.
Read more »
Rogers-Shaw merger hearing closes last day of evidence with more expert testimonyThe Competition Bureau has sought a \u0027full block\u0027 of the original Rogers\u002DShaw deal. Read more.
Read more »
Final witnesses speak during hearing on Rogers, Shaw $26-billion proposed dealCanada\u0027s competition watchdog heard from its final group of witnesses Thursday concerning Rogers\u0027 proposed takeover of Shaw.
Read more »
Cost savings, staff retention packages discussed at hearing on Rogers-Shaw deal - BNN BloombergRetention packages at Shaw Communications will cost up to $50 million if the company's $26-billion proposed merger with Rogers Communications crosses the finish line.
Read more »
Economist questions Shaw Mobile's competitive threat to RogersFormer Competition Bureau chief economist said the launch of Shaw Mobile did not put substantial competitive pressure on Rogers. Read more.
Read more »