TORONTO — Shares in Shaw Communications Inc. fell in early trading after the company and Rogers Communications Inc. said the Commissioner of Competition plans to block their merger.
Rogers and Shaw said late Friday they were informed that the commissioner intends to file applications to the Competition Tribunal in a bid to prevent the $26-billion merger.
The companies say they remain committed to the deal and have offered to address the competition concerns.
RBC Capital Markets analyst Drew McReynolds says he believes the probability of the deal ultimately getting approval remains high.
McReynolds says he believes changes to the deal can be made and that the Competition Bureau is focused on the nature of the remedy package.
Shaw shares were down $2.99 or about eight per cent at $34.57 in early trading on the Toronto Stock Exchange. Rogers has agreed to pay $40.50 per Shaw share.