Canada’s decision on Rogers-Shaw deal may come on Friday -source

(Reuters) -The Canadian government is set to announce on Friday a decision on Rogers (NYSE:) Communications Inc’s C$20 billion ($15 billion) bid for Shaw Communications (NYSE:) Inc, a person familiar with the matter told Reuters on Thursday.

Canadian Minister of Innovation, Science and Industry Francois-Philippe Champagne will make an announcement on “competitiveness in the telecommunications sector,” at 8:30 AM ET (1230 GMT) on Friday, the government said, without giving any further details.

The announcement is about the government’s decision on whether to allow the transfer of Shaw’s wireless licences to Quebecor Inc’s Videotron Ltd., which has agreed to acquire Shaw’s Freedom Mobile wireless carrier for C$2.85 billion, the source told Reuters.

The deal to create Canada’s No. 2 telecoms company was under intense scrutiny from the competition bureau, as it was concerned that the deal would lessen competition in a country where wireless bills are already among the highest in the world.

To address the issue, Rogers and Shaw agreed to sell Freedom Mobile to Quebecor, which is also expected to close by March 31.

Champagne has previously expressed support for the deal if certain conditions were met.

Rogers, Shaw and Quebecor did not immediately respond to a Reuters request for comment.

Rogers in February had extended the deadline for the deal to March 31 for the fourth time, as the companies awaited the final nod from Champagne.

Canadian newspaper the Globe and Mail earlier reported the government would make the announcement.

Shares in Rogers last closed at C$64.50 on Thursday and Shaw at C$39.16.

($1 = 1.3513 Canadian dollars)