By Adriano Marchese


Rogers Communications Inc.'s 20 billion Canadian dollars ($14.8 billion) takeover of fellow Canadian communications company Shaw Communications Inc. cleared its final hurdle with Ottawa's approval of a key license transfer.

The Canadian federal innovation minister, Francois-Philippe Champagne, said Friday he has granted the transfer of Freedom Mobile spectrum licenses to a subsidiary of Montreal-based Quebecor Inc., effectively creating a fourth national telecom provider. The spectrum license transfer is valued at C$2.85 billion.

Approval for the Freedom Mobile transfer was critical to closing the merger between Rogers and Shaw, which the companies now expect to happen April 7.

The transfer comes with certain conditions, including requiring Quebecor's Videotron unit to expand its 5G wireless network across the country within two years and to offer better deals on its plans to customers, similar to what it already offers in Quebec.

"Under these conditions, Videotron's acquisition of Freedom Mobile's licences will improve affordability, competition, and innovation in the telecommunications sector," the minister said in a press conference.

In March 2021, the Rogers and Shaw announced a deal that would combine two of Canada's largest communications companies. At the time, they said the proposed deal would help accelerate the deployment of 5G wireless service across the country.

From the onset, the merger faced public skepticism over concern that the wireless-service business in Canada is already concentrated and the Canadian Competition Bureau sued to stop the deal in May.

In March of last year, the Canadian Radio-television and Telecommunications Commission, a telecom regulator, approved the transfer of assets from Shaw to Rogers.

On Friday, Minister Champagne said Rogers will be subject to its own legally-binding commitments that include major investments to improve and expand its network connectivity, create new jobs and offer more low-cost mobile plan options to Canadian customers.

"The establishment of an effective national fourth player who can compete and drive down prices has been the goal of successive governments for decades. Today's announcement allows for the establishment of that fourth national player for the first time in Canada's history," Minister Champagne said.


Write to Adriano Marchese at adriano.marchese@wsj.com


(END) Dow Jones Newswires

03-31-23 0953ET