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Update 11:15pm: Adds Bloomberg report on likely deal approval.
Shaw Communications (NYSE:SJR) rose 1.1% in after hours trading on reports that Canadian Industry Minister François-Philippe Champagne is expected to approve Rogers (NYSE:RCI) C$20 billion takeover of Shaw.
The Canadian minister is expected to approve the acquisition before the open of Canadian markets on Friday, according to a CTFN report, which cited an unidentified House of Commons aide. Separately, Bloomberg reported, citing a person familiar, that Canadian government will approve the deal and Champagne will announce steps to improve competitiveness in the telecommunications sector at a Friday morning news conference.
The report comes as Friday is the “outside date” or walk date for the parties to exit or extend the transaction after its been extended several times, including on Feb. 17. Shaw (SJR) rose 0.9% in regular trading on Thursday ahead of the deadline. Rogers gained 1.8%.
A decision on the deal largely rests in the hands of Champagne, Canada’s Minister of Innovation, Science and Industry, who is set to grant or deny a license to transfer Shaw’s Freedom spectrum to Quebecor’s (OTCPK:QBCRF) Vidéotron. Champagne’s approval is the last real hurdle for the deal, which in late January won appeals court approval.
In late December Canada’s Competition Tribunal elected not to block their proposed transaction – turning the deal’s fate over to Canada’s Minister of Innovation, Science and Industry.
Rogers (RCI) announced its agreement to acquire Shaw (SJR) in March 2021.
