Canada's Rogers to buy rival Shaw Communications in C$20 billion deal

(Reuters) – Rogers Communications Inc said it agreed to buy rival Shaw Communications Inc for about C$20 billion in cash and stock, in its biggest deal aimed at ramping up its 5G network roll out.

Shaw shareholders will receive C$40.50 per share, representing a premium of nearly 70% premium to its Friday close. Including debt, the deal is valued $26 billion.

The acquisition comes as Rogers looks to lure in more customers after the pandemic hit its media and wireless services businesses.

As part of the deal, expected to close in the first half of 2022, the combined company will invest C$2.5 billion in 5G networks over the next five years across Western Canada, Rogers said.

Both Rogers and Shaw are family-founded businesses. Rogers said the Shaw family would be one of the largest shareholders in combined entity.

($1 = 1.2456 Canadian dollars)

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