Shaw Communications (TSX:SJR.B)(NYSE:SJR) by
Rogers Communications (TSX:RCI.B)(NYSE:RCI) has sent shockwaves through the sector.
The $20 billion deal would create a behemoth in the Canadian telecommunications sector. Certainly, there’s no doubt that this consolidation will have immense long-term growth potential that is, if it’s approved.
There’s going to be a highly anticipated regulatory review on the horizon. Accordingly, investors do have some reason for concern about this deal right now.
Regulatory hurdles might not allow the deal to be approved
Wireless concentration is the biggest hurdle that might stop this deal from materializing. For four years, the Canadian government has been trying to encourage a fourth player to compete with the big players in the telecommunication space.
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