Rogers Signs Deal to Buy Shaw for $26 Billion
Some big news to start off Monday morning—Rogers has agreed to buy Shaw for $26 billion, including $6 billion in debt.
Rogers will purchase all Class A and B shares of Shaw for $40.50 per share, or a roughly 70% premium to Class B Share prices. The deal has the blessing of the Shaw Family Trust to proceed, while the Shaw family will become one of the largest shareholders of Rogers.
Current Shaw CEO, Brad Shaw, will join the Rogers Board of Directors when the deal closes.
Rogers says it will build 5G networks in Western Canada by investing $6.5 billion, with the deal set to bring 3,000 net new jobs across B.C., Alberta, Manitoba and Saskatchewan.
The Shaw Headquarters in Calgary will become our new Western HQ at the iconic Shaw Court in downtown Calgary and remain one of the largest private sector employers in Western Canada.
— Rogers (@Rogers) March 15, 2021
The deal is subject to regulatory approval from Canadian regulators.
For current Shaw customers, Rogers says both companies will remain separate until the transaction is approved by federal regulators.
Rogers says it “will not increase wireless prices for Freedom Mobile customers for at least three years after the close of the deal,” according to a press release.
For Shaw Mobile customers, Rogers says “we will continue to offer competitive and affordable plans and pricing options to meet the budgets and needs of every customer.”
Rogers says it anticipates the deal “will close in the first half of 2022,” saying they “look forward to joining with the Shaw team to deliver even better service for customers from coast to coast.”
Shaw was seen as a viable fourth wireless player to incumbents Rogers, Telus and Bell. Rogers and Shaw will need to convince Canadian regulators the deal brings competition and not consolidation to the wireless market.
…developing, more to follow