Rogers Communications Inc. and Shaw Communications Inc. have signed a definitive agreement with Quebecor Inc. that will see the Montreal-based telecom company acquire wireless carrier Freedom Mobile Inc.
Rogers will sell Shaw-owned Freedom to Videotron Ltd., which is owned by Quebecor, for $2.85 billion in a deal it hopes will appease the concerns of federal regulators about its proposed takeover of Shaw.
The parties say the agreement is consistent with the terms agreed upon on June 17 when the deal was first announced, and is subject to regulatory approvals and the closing of the merger of Rogers and Shaw.
Quebecor will buy all of Freedom’s branded wireless and internet customers as well as all of Freedom’s infrastructure, spectrum and retail locations in a move that would expand Quebecor’s wireless operations nationally.
The parties say the combination of Freedom and Videotron will create a strong fourth national carrier and address the concerns raised by the Commissioner of Competition and the Minister of Innovation, Science and Industry regarding the Rogers-Shaw transaction.
The definitive agreement comes as Rogers continues to deal with the fallout from the July 8 service outage that impacted millions of Canadians for days.