By Will Feuer
Rogers Communications Inc. and Shaw Communications Inc. said in a joint statement that early mediation with the Canadian commissioner of competition didn't resolve objections to the two companies' proposed $16 billion merger.
The companies said the review process will continue as previously disclosed, and that the companies aren't precluded from continuing discussions with the commissioner at any time.
"Rogers and Shaw intend to continue to work constructively with the Commissioner to highlight the many benefits of the merger to all Canadians, including maintaining a strong and sustainable fourth wireless carrier across Canada through the proposed divestiture of Freedom Wireless to Quebecor Inc.," the companies said.
Rogers and Shaw unveiled the planned merger last year, one of the most high-profile Canadian deals in years, and said the combination would help accelerate the deployment of 5G wireless service across the country. The merger faced public skepticism amid concerns the wireless-service business in Canada is too concentrated among a few companies.
Canada's Competition Bureau said in May it would seek to block the deal, arguing the transaction would "substantially prevent or lessen competition" in the country's wireless market.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires
July 06, 2022 07:51 ET (11:51 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.