In a move that will shake up not only the two companies’ local market but also that of North America, Rogers Communications has entered into a merger with fellow Canadian telco Shaw Communication.
Offering a rationale for the $26 billion deal, the companies said Canada’s communications industry was at an inflection point, with the ability to scale and make 5G a reality for all Canadians thus meaning closing the connectivity gap was never more important. They added that 5G was redefining the innovation landscape and that significant multibillion-dollar investments were needed to deliver the connectivity that communities, consumers and businesses not only need but also deserve.
The merger will see the coming together of the company that claims to run Canada’s largest and most reliable 5G network and Rogers boasts that when it can combine its scale, capital and experience with Shaw’s existing cable and fibre-to-the-home and wireless networks it will be able to deliver no less than transformational technology to Canadian consumers more quickly and more efficiently than either company could do on its own.
Indeed, the companies say that the transaction will create Canada’s “most robust” wholly-owned national network, and as a result of the combined teams and enhanced capacity, will generate more choice and competition for businesses, as well as “realising the full benefits of next generation networks for Canadian. Once the transaction is complete, the companies plan to invest $2.5 billion in 5G networks across Western Canada, which the firms say is expected to create up to 3,000 net new jobs.
“Our two companies have been successful because of the foresight and vision of two great founders who were driven by their unrelenting pioneering spirit and entrepreneurial values,” said Shaw Communications executive chair and CEO, Brad Shaw commenting on the deal. “While unlocking tremendous shareholder value, combining these two great companies also creates a truly national provider with the capacity to invest greater resources expeditiously to build the wireline and wireless networks that all Canadians need for the long term. This transaction will create benefits for generations to come.”
“We are proud to join forces with the Shaw family and team as we combine our companies and our 10,000 team members across Alberta, British Columbia, Manitoba, and Saskatchewan,” added Rogers Communications president and CEO Joe Natale. “We’re at a critical inflection point where generational investments are needed to make Canada-wide 5G a reality. 5G is about nation-building; it’s vital to boosting productivity and will help close the connectivity gap faster in rural, remote and Indigenous communities.”
The merger will see the coming together of the company that claims to run Canada’s largest and most reliable 5G network and Rogers boasts that when it can combine its scale, capital and experience with Shaw’s existing cable and fibre-to-the-home and wireless networks it will be able to deliver no less than transformational technology to Canadian consumers more quickly and more efficiently than either company could do on its own.
Indeed, the companies say that the transaction will create Canada’s “most robust” wholly-owned national network, and as a result of the combined teams and enhanced capacity, will generate more choice and competition for businesses, as well as “realising the full benefits of next generation networks for Canadian. Once the transaction is complete, the companies plan to invest $2.5 billion in 5G networks across Western Canada, which the firms say is expected to create up to 3,000 net new jobs.
“Our two companies have been successful because of the foresight and vision of two great founders who were driven by their unrelenting pioneering spirit and entrepreneurial values,” said Shaw Communications executive chair and CEO, Brad Shaw commenting on the deal. “While unlocking tremendous shareholder value, combining these two great companies also creates a truly national provider with the capacity to invest greater resources expeditiously to build the wireline and wireless networks that all Canadians need for the long term. This transaction will create benefits for generations to come.”
“We are proud to join forces with the Shaw family and team as we combine our companies and our 10,000 team members across Alberta, British Columbia, Manitoba, and Saskatchewan,” added Rogers Communications president and CEO Joe Natale. “We’re at a critical inflection point where generational investments are needed to make Canada-wide 5G a reality. 5G is about nation-building; it’s vital to boosting productivity and will help close the connectivity gap faster in rural, remote and Indigenous communities.”
