A federal court has issued an emergency stay order that temporarily stays the competition court’s dismissal of Rogers Communications’ $26 billion acquisition of Shaw Communications, according to the Competition Bureau.
The federal agency has said the suspension will remain in place until the application for suspension and the injunction are reviewed.
The injunction will prevent the deal from taking place until the Bureau’s full appeal against the decision made on Thursday is heard.
The court ruled that the merger is unlikely to lead to higher prices for wireless customers, and that Shaw’s plans to sell Freedom Mobile to Quebecor Inc.’s Videotron are sufficient to ensure that competition does not decrease significantly. I decided that there was.
The bureau is trying to block the merger, arguing in its appeal that the court “ruled in haste” outside its jurisdiction.
If the court’s decision is valid, the merger only requires the approval of the Federal Minister of Industry François-Philippe Champagne. Mr Champagne said on Saturday that he would wait until there was “clarification” about ongoing legal proceedings before making a decision.
The transaction was originally expected to close by the end of 2022, but could be extended to January 31st.