Rogers Communications Inc. will sell Freedom Mobile Inc. to Quebecor Inc. for $2.85 billion in a deal it hopes will appease federal regulators opposed to its proposed takeover of Shaw Communications Inc.
The deal comes after the antitrust regulator reiterated that it opposed Rogers’ plan to purchase Shaw, and is subject to approval by Canada’s competition watchdog and the federal department of Innovation, Science and Economic Development, the firms said.
It covers all of Freedom’s branded wireless and internet customers, infrastructure, spectrum and retail sites, they added in a statement.
Toronto-based Rogers made a $26-billion bid for Calgary-based Shaw and also offered to sell Shaw’s Freedom mobile unit to allay competition concerns as part of the deal.
Deal provides ‘viable and sustainable’ competition, companies say
The Competition Bureau had said the sale would weaken Freedom’s operations, reducing “competitive discipline” among national carriers and lead to a transfer of wealth from low- and middle-income groups to the wealthy Rogers and Shaw families.
Rogers, Shaw and Quebecor argued their agreement would effectively address those concerns and keep alive a “strong and sustainable” fourth wireless carrier in Canada, because the deal would expand Quebecor’s wireless operations nationally.
“The parties strongly believe the agreement effectively addresses the concerns … regarding viable and sustainable wireless competition in Canada,” the companies said in the statement, referring to the reservations of the competition watchdog and the industry minister.
The companies will also provide transport services and roaming services to Quebecor as part of the deal.
“We look forward to securing the outstanding regulatory approvals for our merger with Shaw so that we can deliver significant long-term benefits to Canadian consumers, businesses and the economy,” said Rogers’ chief executive, Tony Staffieri.
Quebecor beat out several other parties to reach the deal. Globalive Capital signed a network- and spectrum-sharing agreement with Telus Corp. in May to boost its bid to purchase Freedom. Formerly known as Wind Mobile, Freedom was founded by Globalive founder and chairman Anthony Lacavera in 2008.
Lacavera said in a statement Saturday that Globalive had offered $900 million more than Quebecor did to buy Freedom. He said its bid was rejected because Globalive is “a real independent and pureplay national long-term competitor.”
“Rogers is afraid to compete. They have shopped this deal to a succession of billionaire friendlies and friendly parties who won’t compete with them [and] are willing to sell Freedom back to them at any time,” Lacavera added.
Canadian law allows approval of mergers that harm competition if the companies can prove the mergers bring efficiency to the economy.
The Rogers-Shaw transaction announced in March 2021 already has approval from the shareholders of Shaw and the Canadian Radio-television and Telecommunications Commission. However, it remains subject to review by the Competition Bureau and the Minister of Innovation, Science and Economic Development.
A woman walks past a Freedom Mobile store in Toronto in this 2016 file photo. Rogers Communications says it will sell Freedom Mobile in a deal that it hopes will appease regulators opposed to its takeover of Shaw Communications, its closest competitor. (Nathan Denette/The Canadian Press)
The Competition Bureau expanded its opposition to Rogers’ proposed takeover of Shaw in new submissions made to the Competition Tribunal on Friday.
In legal filings released after markets closed, the agency challenged Rogers’ claims about efficiencies and said acquiring its closest rival is anti-competitive and would harm consumers through higher prices, lower-quality services and lost innovation.
It also argued the proposed sale of Shaw’s Freedom Mobile is “not an effective remedy,” because it won’t replace the growing competition Shaw Mobile would deliver in Alberta and British Columbia and would make Freedom “a subsequently weaker competitor” than it would have been.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
