Bad News for Telus! Jan 24 (Reuters) - A Canadian court on Tuesday dismissed the competition bureau's effort to overturn an approval of Rogers Communications Inc's C$20 billion ($14.9 billion) bid to buy Shaw Communications Inc. Matthew Boswell, Commissioner of Competition, said in a statement that the bureau was "truly disappointed" but it would not be pursuing a further appeal.
The deal to create Canada's No. 2 telecoms operator was struck nearly two years ago and the companies are now racing to close it before a Jan. 31 deadline. The deal, which has faced opposition from consumer advocates, politicians and rival telecom companies, was a test case for the competition bureau's ability to increase choices for consumers in Canada, where a handful of companies control large swaths of business. But the antitrust agency failed to convince courts that the transaction is bad for consumers in a country where wireless bills are already among the highest in the world.
Opponents of the deal said it would hurt ordinary Canadians. "Rogers buying Shaw means less choice and more expensive prices for every consumer in Canada," said Matt Hatfield, campaigns director at OpenMedia, a lobby group that campaigns to keep internet access easy and affordable.