News: Canada’s Rogers to buy rival Shaw Communications in C$20 billion deal.
(Reuters) – Rogers Communications Inc agreed to buy rival Shaw Communications Inc for approximately $ 20 billion in cash and stock.
Shaw shareholders will receive $ 40.50 per share, a premium of nearly 70% through Friday’s close of trading. The deal is valued at $ 26 billion, including debt.
The acquisition comes as Rogers looks to attract more customers after the pandemic that hit the media and wireless services business.
Under the contract, which is expected to close in the first half of 2022, the combined company will invest $ 2.5 billion in 5G networks across western Canada over the next five years, Rogers said.
Both Rogers and Shaw are family businesses. Rogers said the Shaw family are one of the largest shareholders in a combined company.
($ 1 = 1.2456 Canadian dollars)
Reporting by Eva Mathews in Bengaluru; Adaptation by Shailesh Kuber and Anil D’Silva
Original Source © Reuters