The House of Commons industry and technology committee is planning to hold further hearings into the proposed merger between Rogers and Shaw.
Last year, the committee recommended against letting the merger go through, but that was before selling Shaw’s Freedom Mobile to Videotron became part of the deal. The sale of Videotron was one of the recommendations the committee made in its previous report, which urged the federal government to prioritize wireless affordability and the concerns of customers in its consideration of the deal, as well as ensuring all conditions imposed would be enforceable.
The committee’s recommendations are non-binding, but they could influence a decision from Industry Minister Francois-Philippe Champagne, whose approval is still required for the deal to go through. The minister is withholding his final decision until legal proceedings have concluded, but has signaled that he will approve the transaction if the companies agree to certain conditions, namely keeping Freedom’s prices in-line with what Videotron currently charges in Quebec and keeping Freedom’s existing wireless licences for at least 10 years.
The committee plans to meet on Jan. 25, the day after an appeal will be heard about the Competition Tribunal’s decision to let the merger go through. The Tribunal made a ruling in late December that cleared a path for the deal, but the Competition Bureau is appealing on the grounds that the decision was rushed, made legal errors and erroneously focused on the Freedom divestiture.
Time is of the essence for the deal to close. Rogers and Shaw have previously said that the merger, first announced two years ago, would be at risk of falling apart if it does not close by the end of the month, when Videotron’s financing to acquire Freedom expires.