Rogers Communications has signed a deal to buy Shaw Communications in a transaction valued at $26 billion, including debt. The deal will see the head office of the merged companies remain in Calgary and an additional 3,000 jobs will be added in Western provinces, Rogers said. Rogers Communications Inc. announced Monday it would acquire Calgary-based Shaw Communications Inc. in a $20.4-billion deal that will reshape the country’s telecom landscape, giving Toronto-based Rogers broad access to markets in Western Canada. Rogers has agreed to pay C$40.50 per share in cash for Shaw, which amounts to around C$20 billion and equates to a premium of around 70% on the target’s recent share price. Because the deal will effectively eliminate one of Canada’s four major telecommunications companies, it will need the approval of the innovation, science and economic development ministry, the Canadian Radio-television Telecommunications Commission and the Canadian Competition Bureau. We apologize, but this video has failed to load. Rogers Communications Inc. announced on Monday that they will be acquiring Shaw Communications Inc. in a deal worth $26 billion. Shaw shares jumped 42% to C$34, but traded well below the offer price of C$40.50, suggesting doubts about the deal, which is valued at C$26 billion including debt. Rogers, whose business is concentrated in the urban centers of Ontario, is also expected to gain from Shaw’s strong presence in the sparsely populated regions of Western Canada and help it double down on its efforts to roll out 5G throughout the country. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Canadian Innovation Minister Francois-Philippe Champagne said the review would focus on “affordability, competition, and innovation.”. Rogers Communications Inc. would get the means to accelerate the build-out of its 5G wireless network through its acquisition of Shaw Communications Inc. , but if the deal … However, investors and analysts who expected the deal, believe regulatory risks are imminent. The deal is in cash except for 60% of the Shaw family shares that will be exchanged for shares of Rogers and make the Shaw family one of the … Rogers Communications Inc.'s proposed deal to buy Shaw Communications Inc. is raising questions about how far regulators and elected politicians will … Rogers Communications Inc. announced an agreement Monday to buy Shaw Communications Inc. in a deal valued at $26 billion, including debt. By continuing to use our site, you agree to our Terms of Service and Privacy Policy. © 2021 Financial Post, a division of Postmedia Network Inc. All rights reserved. (Bloomberg) -- It’s a deal that’s been talked about for decades in Toronto’s bank towers and country clubs: The Rogers and Shaw families should merge their giant cable companies. Rogers Communications plans to buy rival Shaw for C$26 billion, a deal that both companies are pitching as a driver of 5G rollout in Canada. The purchase of the Calgary-based telecommunications company would give Rogers a bigger national footprint with deeper access to the West and a national wireline network, according to analysts assessing the transaction, while Rogers itself touted the potential for $1 billion in synergies. Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc. A welcome email is on its way. The merger would combine two of Canada's largest cable and internet providers. Shaw said he sees the deal with Rogers as a natural fit, as the two share similar values when it comes to affordability and ensuring extensive network coverage Canadians can access. Brad Shaw, and another director to be nominated by the Shaw family — which will become one of the largest Rogers shareholders — will be named to the Rogers board. “Rogers wants to get this deal done and appears prepared to address any remedies sought by regulators … let alone an outright sale of Shaw wireless,” Shine wrote in his note to clients. Natale said he wouldn’t divulge the details of nascent talks between the company and regulators, but did say “we feel confident in our ability to strike a good and balanced regulatory outcome.”. Reporting by Eva Mathews in Bengaluru, David Ljunggren in Ottawa and Maiya Keidan in Toronto; Writing by Subrat Patnaik; Editing by Shailesh Kuber and Anil D’Silva. This transaction does not get that without regulatory approval. The deal brings two of the country’s biggest family-founded telecom businesses together, with a combined C$19 billion in annual revenue. All quotes delayed a minimum of 15 minutes. (Reuters) - Rogers Communications Inc said on Monday it was buying Shaw Communications Inc for about C$20 billion ($16.02 billion) in a deal that would create Canada’s second-largest cellular and cable operator but might attract stiff regulatory scrutiny. • Email: bbharti@postmedia.com | Twitter: biancabharti. In a massive deal, Rogers Communications Inc. has announced that they have an agreement to buy Shaw Communications. We ask you to keep your comments relevant and respectful. Visit our Community Guidelines for more information and details on how to adjust your email settings. Rogers Communications Inc said on Monday it has reached an agreement to acquire Shaw Communications Inc. Posthaste: Five things you need to know about the blockbuster Rogers-Shaw merger, Cogeco spurns Rogers again, calling bid a ‘futile exercise’, Rogers mulls next steps as $8.4-billion Cogeco offer expires, tap here to see other videos from our team.