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Rogers – Shaw Deal Receives Final Approval – Merger Arbitrage Mondays

  • April 3, 2023

Shaw Communications Inc. (SJR)

A roller coaster of a deal, which lasted more than two years and at times saw its spread expand to as high as 27.61% is finally approaching successful completion.

On March 15, 2021, the largest corporate takeover in Canada’s telecom history was announced, when Rogers (RCI) won the bidding war for Shaw Communications (SJR), after beating out BCE Inc. (BCE). After over two long years of regulatory hurdles and multiple delays, the deal has finally been approved by the Canadian government and is expected to be completed by the end of this week.

This deal will result in the combination of Canada’s two largest cable networks and allow Quebecor Inc.’s Videotron to expand beyond its home province of Quebec by acquiring Freedom Mobile from Shaw, Canada’s fourth-largest wireless carrier, for $2.85 billion.

According to Bloomberg, ‘The deal unites two billionaire families in a communications firm that will offer wireless, internet and cable television to well over 10 million Canadians from the east coast to the west, with annual revenue near C$20 billion ($15 billion).

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