NDP Leader Jagmeet Singh is calling on the federal government to block a major investment deal involving Rogers and Blackstone, the powerful U.S. investment firm led by Trump ally Stephen Schwarzman.
In a letter to Prime Minister Mark Carney, Singh raised concerns about the national security risks of allowing Schwarzman—a longtime supporter of Donald Trump—to gain influence in Canada’s critical telecom infrastructure.
“Rogers’ wireless network is an essential part of Canada’s telecommunications infrastructure. And Mr. Schwarzman was an early and prominent backer of Donald Trump’s presidential bid,” Singh wrote on Tuesday.
“For a Trump ally and mega-donor to seek to purchase a Canadian strategic asset like telecommunications, should raise alarm bells. Allowing vital infrastructure and strategic assets to fall into the hands of a billionaire ally of Donald Trump is not just a bad idea, it’s a threat to our sovereignty and to our national security,” continued Singh.
Just last week, Rogers confirmed it is receiving a $7 billion cash injection from Blackstone and a group of major Canadian pension funds.
In exchange, the investors will acquire a 49.9% stake in a new Rogers-owned company that will hold a portion of its wireless infrastructure—essentially the system that helps route data between cell towers.
While Rogers will retain 50.1% ownership and 80% of voting rights, the deal allows it to raise funds to pay down debt from its $26 billion takeover of Shaw. The transaction is structured so that Rogers may repurchase Blackstone’s stake between years 8 and 12. Blackstone is expected to earn approximately $400 million per year over the first five years.
The Canadian investors joining Blackstone in the deal are among the country’s largest pension funds. For now, it’s unclear what their exact stakes are in the Rogers deal with Blackstone:
Singh is urging Ottawa to intervene using the Investment Canada Act, which allows the federal government to block foreign investments on national security grounds.
He cited Trump’s history of using economic pressure against Canada and called it “irresponsible” to let one of Trump’s closest financial backers gain a foothold in Canadian telecom. “The government must act in the best interest of Canadians and protect our digital infrastructure from foreign political influence,” Singh wrote.
The deal still requires regulatory approval and is expected to close by mid-2025.
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Good idea