Canada’s competition bureau has confirmed that it will not challenge the proposed acquisition of WIND Mobile by Shaw Communications.
The Bureau issued a No Action Letter saying it will not challenge the proposed transaction before the Competition Tribunal. In reviewing mergers, the Bureau considers many different elements, including the level of economic concentration in the relevant industry and the characteristics of the merging parties and their competitors.
“The Bureau’s review concluded that Shaw’s proposed acquisition of WIND Mobile is unlikely to result in a substantial lessening or prevention of competition because, among other reasons, the two companies do not currently compete against each other, as Shaw does not own wireless assets. The proposed transaction therefore does not increase concentration in the Canadian mobile wireless industry,” said the government in a statement.
Photo Credit: WIND Mobile/Facebook
As part of its normal approach in examining a merger, the Bureau also consults with a wide range of industry participants, such as suppliers, competitors, industry associations, customers, and industry experts.
On December 16th, Shaw announced that a deal had been reached to purchase WIND Mobile for $1.6 billion.
As a result of the proposed transaction, Shaw Communications will replace WIND Mobile as a competitor to the three national mobile wireless service providers, Bell, Rogers and Telus, in urban areas of southern and eastern Ontario, Alberta, and British Columbia.
