Rogers Communications and Shaw Communications Monday issued a joint announcement stating Rogers’ intent to acquire Shaw in a transaction valued at approximately $26 billion, including about $6B of Shaw debt. The deal represents an offer of $40.50 per share for Shaw shareholders.
As part of the transaction, the combined company will invest $2.5B in 5G networks over the next five years across Western Canada. Rogers will also commit to establishing a new $1 billion Rogers Rural and Indigenous Connectivity Fund dedicated to connecting rural, remote and Indigenous communities across Western Canada to high-speed internet.
Rogers also stated that it will not increase wireless prices for its Freedom Mobile customers for at least three years following the close of the transaction.
“We are proud to join forces with the Shaw family and team as we combine our companies and our 10,000 team members across Alberta, British Columbia, Manitoba, and Saskatchewan, supported by a head office in Calgary. Western Canada is a major driver of our national economy and together we will have the scale, expertise and commitment to deliver the technology infrastructure needed to keep local communities connected, businesses competitive and attract new investment,” said Joe Natale, president and CEO of Rogers Communications in a company statement. “We’re at a critical inflection point where generational investments are needed to make Canada-wide 5G a reality. 5G is about nation-building; it’s vital to boosting productivity and will help close the connectivity gap faster in rural, remote and Indigenous communities. Fundamentally, this combination of two great companies will create more jobs and investment in Western Canada, connect more people and businesses, deliver best-in-class-services and infrastructure across the nation, and provide increased competition and choice for Canadian consumers and businesses.”
“Our two companies have been successful because of the foresight and vision of two great founders who were driven by their unrelenting pioneering spirit and entrepreneurial values. Without a doubt, my father would be proud of this moment, combining forces with the company founded by his old friend to deliver more Canadians world class connectivity, more choice, and better value,” added Brad Shaw, executive chair and CEO, Shaw. “While unlocking tremendous shareholder value, combining these two great companies also creates a truly national provider with the capacity to invest greater resources expeditiously to build the wireline and wireless networks that all Canadians need for the long term. This transaction will create benefits for generations to come.”
The transaction is expected to close in the first half of 2022, pending customary closing conditions and regulatory approvals. Rogers stated that it has already secured the financing to cover the cash consideration. According to the companies, the transaction has been unanimously approved by the Rogers Board of Directors and unanimously recommended by the Shaw Board of Directors.
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