(Translation of an original PlanHub article)
While Shaw’s buyout by Rogers has been approved, the Federal Court of Appeal has vetoed it and is reconvening the various parties!
Image Credit: PlanHub
On January 24, Rogers and Shaw will have to go before the courts again to try to convince them of the merits of the Shaw buyout. The Commissioner of Competition has opposed the court’s decision and has decided to appeal. His decision goes much further, as he also filed an injunction to prevent Rogers and Shaw from closing their transaction and went even further by preventing Quebecor from buying Freedom Mobile, which Rogers had to divest in order to buy Shaw.
A buyout is still on the chopping block
Despite the FTC’s approval earlier this week, Innovation, Science and Economic Development Canada (ISDE) still has to be convinced, which should prove to be more complicated. Indeed, ISDE has several arguments to present against this acquisition according to a representative of the Minister of Industry, François-Philippe Champagne, who spoke to the Globe and Mail.
The Minister of Industry should announce his decision at the end of the trial. In the meantime, Rogers and Shaw have had to put the buyout process on hold and have extended their merger deadline to January 31. The merger is not possible until the court and the government make their final decision.
