Hi there. In this short post, I talk about this piece of Canadian news that has come to my attention just recently. Canadian telecom giant Rogers Communications Inc. has agreed to buy Shaw Communications Inc. in a $20 Billion CAD deal. [BNN Bloomberg Article](https://www.bnnbloomberg.ca/rogers-to-buy-shaw-in-16-billion-canadian-cable-deal-1.1577154)

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<center><a href="https://cdn.pixabay.com/photo/2013/08/23/23/39/antenna-175148_960_720.jpg">Pixabay Image Source</a></center>



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> (Bloomberg) -- Rogers Communications Inc. agreed to buy rival Shaw Communications Inc. in a C$20 billion ($16 billion) deal that unites Canada’s two largest cable providers.

> The C$40.50-per-share cash offer has the support of Shaw’s board, the companies said Monday. The proposal represents a 69% premium to Shaw’s most recent closing price

> The transaction represents the merger of companies controlled by two of Canada’s most powerful business families, who have co-operated as well as competed over the years in the battle against telecommunications rivals Telus Corp. and BCE Inc. Rogers and Shaw have carved up, and sometimes traded, rival cable territories -- with Shaw focused on Canada’s western provinces and Rogers dominating Ontario.

> Rogers said the deal will add to earnings and cash flow per share in the first year after closing and that cost savings from the deal will top C$1 billion annually within two years.

> Including debt, the deal is worth about C$26 billion. Shaw Chief Executive Officer Brad Shaw will join the Rogers board.

> (Updates with synergies in fourth paragraph)

> ©2021 Bloomberg L.P.

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Shaw Communications also owns Freedom Mobile which is a recent competitor to the three major telecom giants of Rogers Wireless, Bell Mobility and Telus Mobility. The three telecom giants of Rogers, Bell and Telus have a combined 91% market share. [Wikipedia Source](https://en.wikipedia.org/wiki/Telecommunications_in_Canada).

With this deal of Rogers buying Shaw, Canadians are back to the old days of pre-2009 with having just three major service providers for cable TV, internet and phone services. The lack of competition will hurt Canadian consumers as prices for services will remain high. This may influence some to cut the TV cords. American telecom giant [Verizon tried to come into Canada](https://www.cbc.ca/news/business/verizon-pullback-a-blow-to-canadian-wireless-consumers-1.1346672) to provide competition back in 2013 but it did not occur. 

I am not too pleased with this news. But then again, I know that Canada and lack of competition has been a long time thing in the telecom area. A [July 2020 article from the Calgary Herald](https://calgaryherald.com/news/national/whos-getting-better-cell-phone-data-prices-than-canada-almost-everyone) has a headline that mentions that almost everyone else has better cell phone data prices than Canada. [Another article](https://themarkup.org/2020/09/03/cost-speed-of-mobile-data-by-country) in 2020 is saying that cell phone plans in the United States and Canada are a rip-off.

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<center>Thank you for reading.</center>

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