Rogers and Shaw to come together in $26 billion transaction, creating new jobs and investment in Western Canada and accelerating Canada’s 5G rollout
This announcement builds on the strong legacy of two great, family-founded Canadian companies, and their shared history of service, innovation, customer service and community support. Both companies started as small family run businesses and have grown to become large, successful, telecom companies committed to innovation, customer service and giving back to their communities.
Our industry is at an inflection point. The ability to scale and make 5G a reality for all Canadians and close the connectivity gap has never been more important. As 5G redefines the innovation landscape, significant multibillion-dollar investments are needed to deliver the connectivity that our communities, consumers and businesses need, and our country deserves.
Rogers has Canada’s largest and most reliable 5G network. And when we combine Rogers scale, capital, and experience with Shaw’s existing cable, fibre-to-home and wireless networks we will be able to deliver this transformational technology to Canadian businesses, consumers, communities and institutions more quickly and more efficiently than either company could do on its own.
This transaction will create Canada’s most robust wholly-owned national network, and as a result of the combined teams and enhanced capacity, will generate more choice and competition for businesses, as well as realizing the full benefits of next generation networks for Canadians and Canada’s productivity. Once the transaction is complete, the companies plan to invest $2.5 billion in 5G networks across Western Canada, which is expected to create up to 3,000 net new jobs.
Rogers will also commit to establishing a new $1 billion Rogers Rural and Indigenous Connectivity Fund to connect rural, remote and Indigenous communities across Western Canada to high-speed Internet and closing critical connectivity gaps faster for underserved areas. As part of this fund, Rogers will consult with Indigenous communities to create Indigenous-owned and operated Internet Service Providers, which would leverage Rogers expanded networks and capabilities to create sustainable, local connectivity solutions.
In addition, to help individuals and families access affordable Internet services, Rogers will expand its Connected for Success program nationally to reach every community where the combined company offers Internet services.
Building on Shaw’s longstanding legacy of giving back to the communities where it operates, we are also deepening our commitment to supporting local communities in charitable efforts. Rogers commits to continuing support for the Shaw’s Charity Golf Classic for the next ten years and continuing support for Shaw’s existing community impact programs. Additionally, Rogers will fund a new youth scholarship program to support the development of future talent pipeline in emerging technologies.
These investments in Western Canada are integral to our plan to successfully deliver the next generation of communication technologies and connect communities from coast to coast to coast.
“We are proud to join forces with the Shaw family and team as we combine our companies and our 10,000 team members across Alberta, British Columbia, Manitoba, and Saskatchewan, supported by a head office in Calgary. Western Canada is a major driver of our national economy and together we will have the scale, expertise and commitment to deliver the technology infrastructure needed to keep local communities connected, businesses competitive and attract new investment. We’re at a critical inflection point where generational investments are needed to make Canada-wide 5G a reality. 5G is about nation-building; it’s vital to boosting productivity and will help close the connectivity gap faster in rural, remote and Indigenous communities. Fundamentally, this combination of two great companies will create more jobs and investment in Western Canada, connect more people and businesses, deliver best-in-class-services and infrastructure across the nation, and provide increased competition and choice for Canadian consumers and businesses,” said, Joe Natale, President and CEO of Rogers Communications.
“Our two companies have been successful because of the foresight and vision of two great founders who were driven by their unrelenting pioneering spirit and entrepreneurial values. Without a doubt, my father would be proud of this moment, combining forces with the company founded by his old friend to deliver more Canadians world class connectivity, more choice, and better value. While unlocking tremendous shareholder value, combining these two great companies also creates a truly national provider with the capacity to invest greater resources expeditiously to build the wireline and wireless networks that all Canadians need for the long term. This transaction will create benefits for generations to come,” explained, Brad Shaw, Executive Chair & CEO, Shaw.
“Today’s announcement brings two iconic Canadian family-founded businesses together with the expertise, combined assets, and scale to deliver the next generation of telecommunications to Canadian consumers and businesses. This is a transformational combination; and extends our company’s long legacy of innovation, entrepreneurship, and dedication to world-class service for decades to come,” said, Edward Rogers, Chairman of Rogers Communications.