Canada's diversified communications and media company Rogers Communications Inc. based in Ontario with strong footprints in the field of wireless communications, cable television, telephone and Internet announced the acquisition of Hamilton-based telecom major Shaw Communications' Mountain Cablevision Ltd.
Rogers Communications is also acquiring wireless spectrum licenses from Shaw Communications to operate in British Columbia, Alberta, Saskatchewan, Manitoba and Northern Ontario. The purchase of Shaw's wireless spectrum will need approval by Industry Canada and the Federal Competition Bureau.
Shaw in turn would buy Rogers' 33.3 percent stake in the TVtropolis General Partnership. Accounting for all these moves, the net deal has been worked out at about $710 million (C$700 million).
The deal reinforces the respective positions of Rogers Communications and also that of Shaw Communications, which will apparently use the cash to accelerate network upgrades and other strategic initiatives as it aims to thwart competition from chief regional competitor Telus Corp. Shaw's Chief executive Brad Shaw was quoted saying the deal "opens the door to more products and services."
Rogers CEO Nadir Mohamed has called the spectrum a "great strategic asset" for the company. Reports say Rogers, Telus and BCE are prevented from buying any of the spectrum that was allocated for new wireless competitors during a 2008 auction by the federal government.
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