Freedom Mobile has found a new home under the Québecor banner.
Rogers and Shaw struck a deal with the Montreal-based telecom giant for $2.85 billion in a bid to get their merger approved by regulatory bodies. The move cements the company as the fourth largest telecom provider in the country. Québecor’s subsidiary Vidéotron already serves the Quebec area.
“This is a turning point for the Canadian wireless market,” Pierre Karl Péladeau, Québecor’s president and CEO, said.
“[Vidéotron] is the strong fourth player who, coupled with Freedom’s solid footprint in Ontario and Western Canada, can deliver concrete benefits for all Canadians.”
Québecor is the only company Rogers and Shaw confirmed the sale of Freedom Mobile too. Numerous other buyers were on the table, including Xplornet and Globalive. Xplornet was the first company Rogers seemed to take an interest in, while Québecor appeared to be discluded from initial discussions.
The Rogers-Shaw takeover is valued at $26 billion and is under scrutiny from the Competition Bureau, which has raised concerns the merger will reduce wireless competition. Both telecom providers have asked the Competition Tribunal to dismiss the order blocking the merger.
The sale of Freedom Mobile to Québecor is also subject to similar regulatory approval.
The Globe and Mail further reports the Freedom sale provides more benefits to Rogers than simply gaining regulatory approval. The telecom giant is poised to add 450,000 new wireless customers to its client base.
Image credit: Shutterstock
Source: Rogers, Globe and Mail
