Feds set conditions to sale of Freedom Mobile as part of Rogers-Shaw merger

Selling Shaw-owned Freedom Mobile has widely been seen as the main obstacle to the deal’s approval, and Videotron earlier this year agreed to buy it for $2.85 billion.

But Champagne says before he would approve the Videotron deal, he needs additional concessions.

He says Videotron would have to agree to keep the Freedom wireless licences for at least 10 years and wants to see wireless prices in Ontario and Western Canada lowered by about 20 per cent to compare with Videotron’s current Quebec offerings.

The original $26-billion proposed merger would have meant the wholesale transfer of wireless spectrum licences from Shaw to Rogers.

The deal has already received CRTC approval, and Competition Tribunal proceedings are currently underway, with a mediation ruling expected later this week.

Rogers is the parent company of CityNews and its affiliates.

Quebecor CEO agrees to conditions around sale of Freedom Mobile

Quebecor Inc. CEO Pierre Karl Péladeau says he intends to accept the conditions laid out by Industry Minister François-Philippe Champagne around the sale of wireless carrier Freedom Mobile to Videotron Ltd., which is part of the proposed $26-billion deal between Rogers Communications Inc. and Shaw Communications Inc.

He says in a statement that Quebecor, which owns Videotron, agrees to incorporate the industry minister’s stipulations in a new version of the transaction, paving the way for Freedom’s sale to go through.

Quebecor headquarters are shown during the company’s annual general meeting in Montreal Thursday, May 12, 2016. THE CANADIAN PRESS/Graham Hughes.

Shaw’s ownership of Freedom Mobile has widely been seen as the main obstacle to approval of the Rogers-Shaw deal approval. Montreal-based Videotron agreed to buy Freedom Mobile for $2.85 billion earlier this year.

Champagne said earlier Tuesday evening he would not approve the proposed merger between Rogers and Shaw but left the door open to a revised agreement, saying that before approving Videotron’s purchase of Freedom, he would need two specific concessions.

He said Videotron would have to agree to keep the Freedom wireless licences for at least 10 years and would “expect to see” wireless prices in Ontario and Western Canada lowered by about 20 per cent, putting them in line with Videotron’s current Quebec offerings.

Champagne said his conditions for Freedom’s licence transfer were clear but did not make clear whether a successful sale of Freedom Mobile would mean the Rogers-Shaw deal might still be approved.

Champagne’s approval is required for any spectrum licence transfer.

With files from The Canadian Press