TORONTO — Analysts say new conditions laid out by Industry Minister François-Philippe Champagne Tuesday indicate a willingness to get the proposed $26-billion deal between Rogers Communications Inc. and Shaw Communications Inc. across the finish line.
The stipulations address the sale of Shaw-owned wireless carrier Freedom Mobile to Quebecor Inc.'s Videotron Ltd., a key component in the proposed transaction between the two telecom giants.
In a note to clients, Desjardins analyst Jerome Dubreuil says Champagne's conditions suggest he supports the merger and is signalling that the deal would be acceptable if Quebecor Inc. has the ability to properly compete in the long term.
Scotiabank's Maher Yaghi says Champagne's "pragmatic view" could provide "a good middle ground" for the companies to build on and believes there's a 90 per cent chance the Rogers-Shaw deal will close.
In a statement Tuesday evening, Quebecor CEO Pierre Karl Péladeau said he intends to accept the industry minister's conditions, agreeing to incorporate them in a new version of the transaction.
Quebecor agreed to buy Freedom Mobile for $2.85 billion earlier this year.
This report by The Canadian Press was first published Oct. 26, 2022.
Companies in this story: (TSX:RCI.B, TSX:SJR.B, TSX:QBR.B)
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