Rogers, Shaw and Quebecor announced Friday morning that they have reached a definitive agreement to sell Freedom Mobile to Quebecor subsidiary Videotron, allowing it to develop cell phone service in Ontario and Western Canada.
In a joint statement issued Friday, the companies announced that this definitive agreement is substantially consistent with the terms announced on June 17.
“We are very pleased with this agreement, and we look forward to continuing to develop Freedom’s assets,” said Pierre Karl Péladeau, President and CEO of Quebecor.
Owned by Shaw, Freedom Mobile had to be sold since the Competition Bureau of Canada blocked the acquisition of Shaw by Rogers last May. The transaction would therefore be carried out subject to regulatory approvals and the conclusion of the merger between Rogers and Shaw.
“This agreement with Quebecor brings us closer to closing the merger with Shaw,” said Tony Staffieri, President and CEO of Rogers. We strongly believe that the sale of Freedom to Quebecor responds to the concerns raised by the Commissioner of Competition and by the Minister of Innovation, Science and Industry.”
The amount of the acquisition, concluded by Quebecor with Rogers Communications and Shaw Communication, is valued at $2.85 billion, according to the three companies.