A PYMNTS Company

Canada: BCE to Buy Manitoba Telecom for $2.5 Billion in Cash

By  |  May 2, 2016

BCE Canada’s biggest telecommunications company, agreed to buy Manitoba Telecom Services $2.5 billion in cash and stock, extending its presence westward and further consolidating the country’s wireless market.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The deal adds a company with C$1 billion in annual revenue and extends BCE’s presence into central Canada, where rivals Telus Corp. and Rogers Communications Inc. currently hold more sway. BCE bought Bell Aliant Inc. for C$3.7 billion in 2014 and took over Astral Media Inc. in 2012, giving it more cash flow and the ability to keep increasing its dividend.

    The proposed purchase of Winnipeg-based MTS also presents the first major test of the new Canadian government’s approach to competition in the telecommunications industry. The previous Conservative government, which lost power to Justin Trudeau’s Liberals last year, had fought intensely to strengthen smaller players like Manitoba Telecom, Mobilicity and Wind Mobile by trying to establish four strong competitors in each market. It blocked repeated attempts by Telus to buy Mobilicity and sold wireless spectrum to smaller players at a subsidized price.

    Full Content: Huffington Post

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.