Analyst Note| Matthew Dolgin, CFA |
A few bright spots emerged in Shaw’s fiscal third quarter, but generally the firm continues to see a contracting of its wireline business and underwhelming progress in taking wireless market share. The read-through from the results may be more consequential for Rogers and Quebecor, which are in line to take over Shaw’s wireline and wireless businesses, respectively, pending regulatory approval. Shaw’s press release shared more detail on the status of its merger with Rogers than it has in the past, but it mostly confirmed information that is widely known. The press release intimated that the final approval decision could drag into calendar 2023 if Rogers and Shaw can’t come to an agreement with the Competition Bureau and instead take their case before the Competition Tribunal.