
Rogers Communications Inc. failed to settle a dispute with Canada’s antitrust watchdog about its takeover of Shaw Communications Inc. during mediated talks, almost certainly sending the parties to court.
The companies said they’re committed to the deal and are confident of their chances in litigation. That step is scheduled to begin next month, with Rogers, Shaw and the Competition Bureau making their arguments in front of the federal Competition Tribunal.
Related: Rogers, Shaw To Work With Canadian Watchdog Over Blocked Merger
At stake is one of the largest mergers in Canada’s history — a C$20 billion ($14.7 billion) deal to unite Rogers, the country’s largest wireless and cable firm, with Shaw, a major provider of cable and internet services in the western provinces.
Rogers and Shaw tried to appease antitrust regulators by striking a deal to sell Shaw’s Freedom Mobile division to Montreal-based communications company Quebecor Inc. That wasn’t enough for the Competition Bureau, which has argued in court documents that Freedom will be a weaker competitor under new ownership and consumers are likely to pay higher prices.
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