Tag: Freedom Mobile

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Québecor wins the Freedom Mobile jackpot

Montreal, QC, Canada – September 4, 2021: Quebecor headquarters in Montreal, QC, Canada. Quebecor Inc. is a Canadian diversified media and telecommunications company.

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

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Shaw says Competition Bureau’s opposition of Rogers merger based on ‘fundamental misconceptions’

Rogers and Shaw are asking the Competition Tribunal to dismiss the Commissioner of Competition’s order blocking their proposed $26 billion merger.

The Commissioner filed an application to the Competition Tribunal last month, saying the merger would impact wireless competition in Canada. The application further states Shaw owned Freedom Mobile’s ability to compete in the wireless market depends on how Shaw leverages its wireless assets.

In separate responses to the Competition Tribunal, both Rogers and Shaw disagreed.

Shaw’s response

Shaw says the Commissioner of Competition’s application to block its overtaking by Rogers is based on “fundamental misconceptions” about its business.

In its response, Shaw says the commissioner wants to block the merger because he believes it will lessen wireless competition in parts of Alberta, British Columbia, and Ontario, but “there is simply no basis for this extraordinary measure.”

Shaw says the commissioner’s concerns about the inseparability of its wireless and wireless business are “wholly misplaced.” The company says it purposely designed Freedom Mobile to be a standalone business and ensure “it can cleanly and easily be separated from Shaw.”

“Contrary to the Commissioner’s allegations, Freedom Mobile’s success under Shaw’s ownership has not depended on “leveraging” Shaw’s wireline assets.”

Rogers response

Rogers says the acquisition won’t decrease competition but will lead to “substantial efficiencies for the Canadian economy.”

The Toronto-based company said the commissioner’s rejection to sell Freedom Mobile is “unreasonable” and “not supportable at law.”

Rogers says the divestiture of Freedom as a fourth competition in the wireless market will eliminate any alleged concerns the merger would have on competitive effects.

The responses were filed less than a week after Rogers agreed it wouldn’t close the merger until it reached an agreement with the Competition Bureau. 

Both companies are asking the tribunal to dismiss the commissioner’s application.

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Globalive takes its offer to buy Freedom Mobile to Shaw

Globalive has taken its offer to purchase Freedom Mobile to Shaw, The Globe and Mail reports.

The company, chaired by Wind Mobile founder Anthony Lacavera, presented a $3.75 billion offer to Shaw directly. Wind Mobile was sold to Shaw in 2016 and rebranded to Freedom Mobile.

According to The Globe and Mail, the offer is the same one Globalive made to Rogers in May and frustration from the process led Globalive to take the offer directly to Shaw.

Rogers is selling Freedom Mobile to appease competition concerns and gain approval for the $26 billion takeover of Shaw.

“We have made our offer for Freedom Mobile to Shaw directly because Rogers has continued to decline to engage with us despite the strength of our $3.75B offer,” Lacavera tweeted Friday.

“Why? Simply because Rogers does not want there to be more competition in wireless services.”

A Shaw spokesperson told The Globe and Mail it’s not in a position to look into the offer, as its deal with Rogers prohibits it.

Rogers has been in talks with various companies to buy Freedom, including Xplornet and Vidéotron.

Source: The Globe and Mail

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Rogers agrees not to close Shaw merger until agreement with Competition Bureau finalized

The Competition Bureau’s application seeking an interim injunction on the Rogers-Shaw merger has been resolved.

According to a press release from Rogers, the two companies won’t continue with the merger’s closing until they reach a settlement with the Commissioner of Competition or the Competition Tribunal has made a ruling.

If the matter goes before the tribunal, the two companies will oppose the commissioner’s application.

Matthew Boswell, the Commissioner of Competition, filed an application earlier this month blocking the merger. He argues the merger has reduced competition in the wireless market and, if approved, would result in higher bills for Canadians.

“I’m pleased this case can now move quickly towards a hearing before the tribunal. Our objective remains to protect Canadians by preserving competition and choice in Canada’s wireless market,” Boswell said.

Rogers has committed to selling Shaw’s wireless business, Freedom Mobile, to create a fourth competitor in the market. The company has been in talks with several organizations, including Xplornet.

Source: Rogers and the Competition Bureau of Canada 

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Telecom executives address Freedom Mobile sale at annual TD conference

Canada’s telecom executives all shared their take on creating a fourth provider in Canada through Freedom Mobile at the TD Securities Telecom and Media Conference Wednesday.

The wireless provider, currently under Shaw’s ownership, is a significant aspect of the merger as Rogers looks to sell the company to gain regulatory approval.

Numerous parties are reportedly on the table, including telecom providers Québecor and Xplornet. Globalive, which created Wind Mobile before it was sold to Shaw and renamed Freedom Mobile, is also a bidder.

Globalive recently entered a network partnership agreement with Telus to strengthen its bid. Telus’ chief financial officer Doug French said very little about the partnership at the conference, according to Cartt.ca.

“If there’s going to be a remediation partner in this, if this deal gets approved and if there was a network share [agreement] that needs to be signed, we would consider it as a Switzerland-type of approach to whomever,” French said.

“But we have to work through that and decide, as long as the terms were right, but MVNO is going to happen anyway. We just have to make sure we have potentially a more commercial outcome, instead of a government-regulated outcome.”

While the merger gained approval from the Canadian Radio-television and Telecommunications Commission (CRTC) on the broadcast aspect of the merger, federal bodies haven’t given green lights for internet and wireless services.

The Competition Bureau recently filed applications blocking the merger, saying it will decrease competition in Canada.

At the conference, Rogers CEO Tony Staffieri says the company has the opportunity to work with the bureau, according to Cartt.ca.

“…We have a good roster, if I can call it that, of qualified bidders that we think are ultimately going to hit the mark in terms of what’s required from a remedy standpoint.”

Source: Cartt.ca

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Globalive reinforces its Freedom Mobile bid through network partnership with Telus

Globalive has signed a network and spectrum sharing agreement with telecom giant Telus to make Freedom Mobile available nationwide if successfully acquired by Globalive.

The agreement will last 20 years.

Rogers is currently in the process of selling Freedom Mobile, which is part of Shaw’s network. Rogers’ executives hope the move will appease competition concerns and aid its $26 billion merger with Shaw.

Globalive says the agreement with Telus will allow the company to deliver services with lower pricing and a quality network, “establishing a vigorously competitive environment for decades to come.”

The company says the partnership will eliminate any possibility of Rogers reacquiring Freedom Mobile.

“Canada needs a truly independent fourth carrier to ensure consumers have the benefits of a competitive market and a level playing field,” Anthony Lacavera, Globalive’s chairman, said. “We’re excited to bring Canadians closer to that reality with this transformational announcement.”

The historic deal with Telus marks the first time an established network has entered into an agreement with an independent competitor, Globalive says.

Globalive founded Wind Mobile in 2008 and sold it to Shaw for $1.6 billion in 2015. The company was renamed Freedom Mobile in 2016.

Lacavera has been vocal about his company’s desire to acquire Freedom Mobile and has made an offer worth $3.75 billion. 

“We’re the only ones that have competed successfully against the big three in the last 30 years. We’re the only ones that built a viable competitor that was standalone and independent,” Lacavera told MobileSyrup in March. 

But Globalive’s offer isn’t the only one on the table. Xplornet and Québecor have also been in talks to acquire Freedom Mobile, along with a group of buyers consisting of LiUNA Pension Fund of Central and Eastern Canada, the Musqueam Capital Corp, the Tsleil-Waututh Nation, Fengate Asset Management, and Aquilini Equities.

Source: Globalive Capital 

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Every way the sale of Freedom Mobile could play out

Rogers’ merger with Shaw Communications has dominated headlines for the better part of the last year as it slowly inches towards completion.

The $26 billion acquisition is arguably one of the largest mergers of its kind, and it will change the way the wireless market operates, a cause of contention for many.

With Canadians paying some of the highest mobile bills globally, many worry the merger could further impact their bills. The concern is also playing on the minds of federal regulators. The Competition Bureau, one of the federal bodies that must approve the merger, has filed applications to block Rogers’ acquisition of Shaw. 

“We are taking action to block this merger to preserve competition and choice for an essential service that Canadians expect to be affordable and high quality,” Matthew Boswell, the Commissioner of Competition, said.

The Bureau worries removing Shaw as its own entity will reduce competition in an already concentrated wireless market. The Bureau found competition between Rogers and Shaw has declined and will continue if the merger is approved. They said Shaw’s wireless offering is already an established competitor and eliminating it will lessen competition within and outside Shaw’s service area.

Rogers is selling Freedom Mobile to appease federal bodies. (Image credit: Shutterstock)

According to Reuters, the Bureau’s decision to block the merger doesn’t mean they can’t reach a conclusion with Rogers.  “The commencement of litigation does not prevent the parties and the Bureau from reaching an agreement to remedy the competition concerns at any time,” a spokesperson told the publication.

Rogers is looking to sell Freedom Mobile to appease competition concerns. But the real game is to find a carrier that can make Freedom Mobile a fourth competitor, and there are many ways this can go.

Xplornet

Xplornet Communications appeared to be the first company Rogers took an interest in. In April, the Globe and Mail reported that Rogers presented a deal to the federal government to see the rural internet service provider, owned by New York-based Stonepeak Infrastructure Partners, buy Freedom Mobile. 

“Anthony Lacavera expressed interest in buying Freedom Mobile before Rogers said it would sell the asset.”

Executives from Xplornet and Rogers have remained quiet on the potential offer. During Rogers’ 2022 Q1 conference call, CEO Tony Staffieri said, “we’re not going to comment on any rumours that are out there.”

Stonepeak acquired Xplornet in June 2020.

Globalive

Globalive’s founder, Anthony Lacavera, expressed interest in buying Freedom Mobile before Rogers said it would sell the asset. Lacavera started Wind Mobile in 2008 before selling it to Shaw in 2015. The company was renamed Freedom Mobile in 2016.

Globalive’s offer is worth $3.75 billion, and according to the Globe and Mail, Twin Point Capital and Baupost Group are assisting with financing for the project.

Lacavera has made it increasingly clear that he wants to acquire Freedom Mobile. He told MobileSyrup the company successfully competed “head to head” with competitors when Globalive headed the company, and they’ll do it again if they acquire Freedom Mobile.

Lacavera said regulatory issues contributed to the sale of the company to Shaw. At the time, investors he brought in faced regulatory approvals to continue operating in Canada. Lacavera told MobileSyrup that his current investor group is primarily U.S.-based.

The company could run into similar regulatory issues despite careful measures, repeating its past. While any of the investors in the company’s making offers could face regulatory problems down the road, Globalive has already lived through this and showed that it could not hold onto the company.

MobileSyrup interviewed Anthony Lacavera in 2014.

Québecor

Québecor Inc. is also in talks to acquire Freedom Mobile despite being discluded from previous decisions. The parent company of Vidéotron owns 294 blocks of spectrum in the 3500MHz band across Canada, which is seen as a positive when it comes to expanding wireless services.

While Québecor Inc. has expressed interest in acquiring Freedom Mobile, it has also said it alternatively could choose to instead expand its business elsewhere. 

“Making comments on this specific situation is certainly not in our best interest,” Pierre Karl Péladeau, Québecor’s CEO, said on its involvement with Freedom Mobile during a conference call discussing the company’s first-quarter financial results.

A new offer

As reported by the Globe and Mail, the latest group of buyers is made up of the LiUNA Pension Fund of Central and Eastern Canada, the Musqueam Capital Corp, the Tsleil-Waututh Nation, Fengate Asset Management, and Aquilini Equities. The publication report’s the company’s have collectively presented the federal government with an offer to acquire Freedom Mobile.

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Anthony Lacavera reaffirms his offer to buy Freedom Mobile

Three weeks after Rogers presented Xplornet as the apparent acquirer of Freedom Mobile to the federal government, the company has provided no indication the wireless asset owned by Shaw is close to being sold off.

The Globe and Mail broke the news in April and recently followed up with a report stating Québecor was also in talks with Rogers to acquire Freedom Mobile. This clarifies that no deal is set in stone, and a third bidder, Globalive wants to re-enter the action.

The group’s chairman, Anthony Lacavera, says his $3.75 billion offer is still on the table.

“Our offer stands. It’s a funded, fully financed offer. We’ve presented Rogers with evidence of the funding partners,” Lacavera told the Financial Post, adding he plans on contacting Rogers this week.

Lacavera started Freedom Mobile in 2009. It was called Wind Mobile, but Shaw rebranded it after buying the company.

Rogers says it’s selling off Shaw’s wireless assets to deal with competition concerns brought on by Canada’s Competition Bureau. But the federal body is opposing the merger, having filed applications to block the deal on May 9th.

As the Financial Post points out, it’s unclear if Freedom Mobile’s sale to Lacavera would resolve the concerns of the Competition Bureau.

Source: Financial Post 

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Québecor joins conversation to acquire Freedom Mobile

Montreal, QC, Canada – September 4, 2021: Quebecor headquarters in Montreal, QC, Canada. Quebecor Inc. is a Canadian diversified media and telecommunications company.

Québecor Inc., a company previously discluded from discussions to acquire Freedom Mobile, has been asked to join the conversation.

According to the Globe and Mail, bankers representing Rogers have reached out to their counterparts at Québecor.

The Globe and Mail previously reported Rogers presented Xplornet as the company to acquire Freedom Mobile and introduced an offer to the federal government.

Stonepeak Infrastructure Partners owns Xplornet, and the publication reported representatives met with the Competition Bureau. However, the regulator has not rejected Xplornet’s proposal at this time.

In more recent developments, Rogers and Shaw say they will be opposing an application from the Commissioner of Competition that disputes the merger of the two companies.

In a joint press release, they state the roughly $26 billion deal is the best option for Canadians.

“Rogers and Shaw remain committed to the transaction, which is in the best interests of Canada and Canadians because of the significant long-term benefits it will bring for consumers, businesses and the economy.”

The release says the companies are addressing concerns the merger will have on the wireless market by selling Freedom Mobile.

The Competition Bureau is one of three federal avenues Rogers must get approval from before the transaction is approved. The company still needs approval from Innovation, Science and Economic Development Canada. The transaction has received the green light from the Canadian Radio-television and Telecommunications Commission.

Image credit: Shutterstock

Source: Globe and Mail and Rogers

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Canada’s Competition bureau plans to oppose Rogers’ $26-billion takeover of Shaw

Canada’s Commissioner of Competition is reportedly planning to oppose the $26-billion takeover of Shaw by Rogers at the Competition Tribunal. The two telecom companies have come together to make a joint statement on the matter.

The application from the Commissioner of Competition, Matthew Boswell. The two companies are planning to oppose it, following notification of Boswell’s intention to file the application late this week. The application seeks to block the proposed merger of Rogers and Shaw, homogenizing two of Canada’s largest cable networking companies.

Rogers and Shaw, along with the Shaw family trust, agree to extend the merger deadline. The deadline is now set for July 31st rather than June 13th.

Rogers and Shaw remain committed to the transaction, which is in the best interests of Canada and Canadians because of the significant long-term benefits it will bring for consumers, businesses and the economy,” the joint statement reads. “The companies have offered to address concerns regarding the possible impact of the transaction on Canada’s competitive wireless market by proposing the full divesture of Shaw’s wireless business, Freedom Mobile.”

Freedom has roughly two million wireless customers across Ontario, Alberta, and British Columbia. It is credited with driving down cellphone bills throughout previous years. A number of firms and entities have also expressed interest in the acquisition. This includes Globalive Capital’s Anthony Lacavera, who offered Rogers $3.75-billion for Freedom. Lacavera is also said to have called the sales process a “non-competitive sham.”

In March, Boswell is said to have received a letter from Lacavera, accusing Rogers of running a “closed and secretive sales process.”

As part of a press release from Rogers and Shaw, the two detail benefits of the $26 billion deal. A $2.5 billion investment is being made to build 5G networking in Western Canada until 2027. $1 billion is also being invested in the networking of rural and Indigenous communities.

Image credit:

Source: The Globe and Mail