By Robb M. Stewart


Canada's antitrust regulator won't stand in the way of Rogers Communications Inc.'s pending $15 billion takeover of Shaw Communications Inc., but continues to disagree with a federal court decision to dismiss its challenge of the deal.

Commissioner of Competition Matthew Boswell said the Competition Bureau accepts the decision of the Federal Court of Appeal and won't pursue a further appeal of the merger between two of Canada's biggest wireless, TV and internet communications companies.

"Although (the) developments are discouraging, we stand by the findings of our investigation and the decision to challenge the merger. We brought a strong, responsible case to the Tribunal after conducting a thorough examination of the facts," Mr. Boswell said.

Rogers and Shaw welcomed Tuesday's decision by the Federal Court of Appeal to dismiss the commissioner's appeal against a decision at the end of last year by the country's Competition Tribunal rejecting the challenge of the tie-up.

Rogers combination with Shaw has already been approved by Shaw's shareholders and the transfer of Shaw's broadcasting licences to Rogers has been okayed by the Canadian Radio-television and Telecommunications Commission. The companies said they are working to secure the final approvals from the federal government for spectrum license transfers to Quebecor Inc., which as part of the merger is buying Shaw's Freedom Mobile unit.

Canada's innovation minister, Francois-Philippe Champagne, in a statement posted on Twitter said he will be reviewing Tuesday's decision and will make his own ruling in due course.

Rogers and Shaw unveiled their planned transaction in 2021, and said the merger would help accelerate the deployment of 5G wireless service across the country. However, the merger has faced public skepticism and concerns that the wireless-service business in Canada is already too concentrated among a few companies.

The competition bureau filed court applications in May 2022 seeking to block the planned acquisition, arguing the deal will harm millions of consumers in the western provinces of Alberta and British Columbia through higher costs and lost innovation for wireless services. The merger court ruled in late December against the challenge, saying that the deal's terms aren't likely to prevent or lessen competition substantially for consumers.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

01-25-23 0922ET