Canadian Appellate Court Refuses to Block Rogers/Shaw Merger

Canada’s Federal Court of Appeal dismissed Commissioner of Competition Matthew Boswell’s application to overturn the Competition Tribunal's decision and block Rogers Communications’ proposed merger with Shaw Communications and Shaw’s secondary divestiture of its Freedom Mobile subsidiary to Videotron. To render an order blocking the overall transaction, the tribunal “would have had to find that it would be likely to prevent or lessen competition substantially,” said the court’s opinion Tuesday. “In 413 tightly-written paragraphs, many full of detail,” the tribunal “did not so conclude,” it said. Rogers, Shaw and Videotron parent Quebecor “welcome this clear, unequivocal, and unanimous decision by the Federal Court of Appeal,” said the companies in a joint statement. They will continue to work with authorities “to secure the final approval needed to close the pro-competitive transactions and create a stronger fourth wireless carrier in Canada and a more formidable wireline competitor,” they said.