Rogers Completes Merger with Shaw, Says 5G Prices Coming Down

Rogers has announced the completion of its “historic merger” with Shaw bringing together two of Canada’s most “iconic” companies to create one national cable, media, and wireless company. The quick completion of the deal comes after Canada approved the merger on Friday. Now that was a fast turnaround.

The merger, according to both companies, unlocks billions in investment to “bring significant benefits to Canada and Canadians.” Rogers and Shaw boasted they have together invested over $40 billion over the past 10 years building their world-class networks.

“We’re proud to bring together these two iconic companies to deliver more value, more connectivity, and more innovation for Canadians,” said Tony Staffieri, President and CEO of Rogers, who’s expected to earn $8 million in bonuses for completing the transaction.

The Shaw family has become one of the largest shareholders of Rogers, with Brad Shaw and Trevor English designated for nomination to the Rogers Board of Directors.

“We plan to bring together our products and services for Canadians in a way we never have before,” added Staffieri. “This is a business of scale, and we can now deliver even more value for consumers and businesses on Canada’s largest and best national network.”

Rogers and Shaw say they can now offer internet, television, phone, smart home monitoring, wireless services, credit cards, sports and media content and more to Canadians.

Western Canada over the next five years will see $1 billion invested to connect rural, remote, and Indigenous communities and unserved remote highways in the four Western provinces.

Another $2.5 billion will be invested to expand and improve 5G in over 300 communities in Western Canada, and $3 billion more for broadband to provide faster speeds to 4.7 million homes from Northern Ontario through to British Columbia.

Rogers has also created a new website detailing its Shaw acquisition, complete with a dramatic, feel good video showcasing the merger, with the tagline: Rogers together with Shaw.

We’re excited to officially welcome @ShawInfo to the Rogers team!

Rogers and Shaw are coming together to bring you more 5G wireless coverage, faster fibre-powered internet and continued support for local communities.

Learn more at https://t.co/xBixcuh28B pic.twitter.com/lQ0GvnQ7HP

— Rogers (@Rogers) April 3, 2023

“We’re thrilled to come together as one company to build on a shared legacy of investment, innovation, and entrepreneurship,” said Edward Rogers, Chairman of Rogers. “As a proud Canadian company, we’re committed to investing for Canada and Canadians for decades to come.”

“By investing in and providing Canadians with access to fast, next-generation networks, my family and the employees of the new combined company are excited to continue building on Shaw’s legacy while helping usher in a new wave of competition and innovation,” said Brad Shaw, former Executive Chair and Chief Executive Officer of Shaw.

Rogers and Shaw point out that the merger will also connect more low-income Canadians and make 5G services more affordable, plus reduce the price of Rogers 5G wireless data by 30% over the next three years (keep an eye on that!). They plan to also invest $75 million annually to support local charities reaching over 50,000 youth across Canada.

The closing of the deal also meant Quebecor has completed its acquisition of Freedom Mobile from Shaw today, as part of the merger process to appease competition regulators. Critics of the Rogers-Shaw merger say the consolidation of telecoms will see higher prices and less competition, the opposite of what these companies are touting.