Rogers, Shaw rally after Competition Tribunal approves merger

Shares of Rogers Communications (RCI) and Shaw Communications (SJR) are moving higher after Canada’s Competition Tribunal approved the merger between the two companies. The Tribunal determined the proposed transactions and ancillary agreements comprising the arrangement "are not likely to prevent or lessen competition substantially." It added, "In other words, the Merger and Divestiture are not likely to result in materially higher prices, relative to those that would likely prevail in the absence of the arrangement. The Merger and Divestiture are also unlikely to result in materially lower levels of non-price dimensions of competition, relative to those that would likely exist in the absence of the arrangement. Such nonprice dimensions of competition include service, quality, variety, and innovation." Shares of Rogers are up 5% to $47.27 and Shaw is up 10% to $28.98 in early trading following the approval.