- Category: Economic
- Published Thursday, February 4, 2016
- CTV News
OTTAWA -- The federal Competition Bureau says it won't challenge the proposed $1.6-billion acquisition of struggling wireless carrier Wind Mobile by Shaw Communications.
In issuing its "No Action Letter," the federal watchdog agency said the acquisition appears to pose no threat of a substantial lessening or prevention of competition.
The bureau said the two companies do not compete against each other since Shaw does not own currently own wireless assets.
Consequently, the proposed takeover also does not increase concentration in the Canadian mobile wireless industry.
Meanwhile, as a result of the deal, Shaw (TSX:SJR.B) will replace Wind as a competitor to the three national mobile wireless service providers -- Bell (TSX:BCE), Rogers (TSX:RCI.B) and Telus (TSX:T) -- in urban areas of southern and eastern Ontario, Alberta and British Columbia.