Wireless communications service provider Rogers Communications (TSE:RCI.A) (NYSE:RCI) received the green light from Canada’s merger court for its $14.77 billion (C$20 billion) acquisition of telecom giant Shaw Communications (TSE:SJR.A) (NYSE:SJR). The merger has been pending for almost two years, and this development eliminates one of the final obstacles.
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The amalgamation of two of Canada’s largest telecommunications firms won the 7-month-long antitrust case when the country’s antitrust bureau failed to convince the court that the merger will disrupt competition in the sector.
The merged companies will accelerate the 5G rollout in Canada, particularly in underserved rural and indigenous communities.
Investors are set to receive C$40.50 in cash for each share of Shaw, which closed at C$35.77 per share on Thursday on the Toronto Stock Exchange.
Is Rogers Communication Stock a Buy?
Wall Street is bullish on Rogers Communications, with a Strong Buy rating based on five Buys and one Hold. The average price target of C$70.25 indicates an upward potential of 14.23% over the next 12 months.
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