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merger

Tuesday July 12, 2022

July 12, 2022 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Tuesday July 12, 2022

Rogers outage won’t ‘sink’ $26-billion deal to buy Shaw, competition expert says

March 19, 2021

As the fallout from the Rogers Communications Inc. service outage continues to play out, one competition expert says she doesn’t think it will “sink” the telecom giant’s proposed $26-billion takeover of Shaw Communications Inc., but believes it will make everyone pay closer attention to the deal.

In an interview on Monday, University of Ottawa professor Jennifer Quaid said the only way the outage would have a negative impact on the deal would be if there was any evidence showing Rogers displayed a lack of thoroughness in reporting the circumstances due to limited competition in the market.

Quaid also said that there is now a bigger opportunity for regulators to take a closer look at cost savings from the proposed deal and whether those savings would come from eliminating redundancy systems and reducing technical staff.

Telecom researcher Ben Klass said the outage shows that further consolidation and concentration of power in the market is “a bad idea” for Canada.

“We are used to hearing that ‘bigger is better’ when it comes to telecommunication and technology companies, but last weekend’s outage shows that there are also significant risks associated with putting too many eggs in one basket,” he said. “There is strength and value in diversity and decentralization.”

Edward Jones analyst David Heger said the network outage is an additional risk factor for the Rogers-Shaw transaction, but doesn’t believe it will actually hurt it.

“Regulators may point to the outage as another reason why the merger concentrates too much customer traffic with one operator,” he said. “However, I still believe that the proposed sale of Shaw’s Freedom Mobile wireless operations to Quebecor (Inc.) should address this concern.”

The deadline for Rogers, Shaw and Quebecor to reach a definitive agreement on the sale of Freedom is July 15. (Yahoo Finance) 

 

Posted in: Canada Tagged: 2022-22, business, Cable, Canada, consumers, Francois-Philippe Champagne, marriage, merger, monopoly, monster, Rogers, Shaw, telecom, telecommunications, wedding

Friday March 19, 2021

March 26, 2021 by Graeme MacKay

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday March 19, 2021

A big deal threatens bigger cellphone fees

There are two things you can bet on when it comes to this week’s $20.4-billion bid by Rogers Communications to snap up rival Shaw Communications.

First, the deal would be very good for both of these telecommunications giants, and not least members of the Shaw family who would personally pocket $920 million in cash for their troubles.

Second, the current takeover plan threatens to be very bad for Canadian consumers, and that probably means people like you. 

Think your monthly cellphone fees are sky-high today? They could blast into the stratosphere if this deal goes through as is. Because if one of Canada’s four biggest telecom companies is bought up by one of the others, there will be even less of the competition so urgently needed to keep some kind of a lid on prices. 

Let’s hope Prime Minister Justin Trudeau is watching this one closely. Let’s hope even more that he’s ready to stand up for the interests of ordinary Canadians. The fact is, cellphone users in this country are already saddled with some of the most bloated cellular fees in the industrialized world. On average, Canadians spend 20 per cent more than Americans and an eye-watering 120 per cent more than Australians for cellphone plans that offer comparable service.

Canada’s “Big 3” telecom companies — Rogers, Telus and Bell — defend the high prices as the cost of providing a first-rate service in a vast land, though the U.S. and Australia are also pretty big places where bills are a lot lower than here. It’s also worth noting that a review by Canada’s Competition Bureau found that those Big 3 telecom companies, however they excuse their pricing, were racking up far stronger profits than their Group-of-Seven or Australian counterparts.

One of the problems industry analysts consistently point to is the lack of competition for providing wireless services in Canada. Today, Rogers, Telus and Bell control nearly 90 per cent of the market. If Rogers is allowed to gobble up Shaw, the Big 3’s market share will rise to 95 per cent. 

Federal government after federal government has agreed more, not less, competition is what this sector needs. And they were all correct. Freedom Mobile, which was started by Shaw in 2016, has been credited with driving wireless plan prices down to at least some degree in Ontario, Alberta and British Columbia.

So what happens if big-fish Rogers swallows up smaller-fish Shaw and takes over not just Shaw’s cable and internet operations in western Canada but its Freedom mobile business? Rogers has tried to silence concerns about its takeover plans by promising not to raise cellphone fees for three years. However sincere that offer is, it would do nothing to stop a whopping fee hike on Day 1 of Year 4.

While Trudeau knows that telecommunications companies need to earn enough money to underwrite expensive investments in internet and wireless networks, he and his party declared they would lower cellphone fees by 25 per cent by the end of 2021.

Given that both the Competition Bureau and the Canadians Radio-television and Telecommunications Commission will now take a year or more to review this deal, Trudeau has time to think this one out carefully. But at the end of the day he should be willing to intervene strongly on behalf of consumers. One option among many would be to approve the deal — if Rogers agrees to sell Shaw’s Freedom Mobile business to a company such as Cogeco, which is interested in expanding into the cellphone business.

Such a deal between Rogers and Shaw might not be as big. Almost certainly, neither would the cellphone bills be in this country. (Hamilton Spectator Editorial) 

 

Posted in: Canada Tagged: 2021-11, Canada, cell phone, Competition Bureau, merger, mobile, monster, regulation, regulatory, Rogers, shadow, takeover, telecom

Tuesday August 26, 2014

August 25, 2014 by Graeme MacKay

Tuesday August 26, 2014By Graeme MacKay, The Hamilton Spectator – Tuesday August 26, 2014

Tim Hortons, Burger King shares surge on merger talk

Shares in Burger King and Tim Hortons have jumped dramatically in pre-market trading in New York on news the two companies are talking about joining forces.

It’s not know what such a deal would be worth, but both stocks surged with U.S.-based Burger King up 16.2 per cent to US$27.11. Shares in Tim Hortons jumped 16.96 per cent to US$62.84.

If Burger King joins forces with Tim Hortons, the new publicly traded company would be based in Canada and would have tax advantages for the U.S.-based burger chain.

Burger King would be able to shave its American tax bill in what’s called a tax inversion, something that has become increasingly popular among U.S. companies trying to cut costs.

In an inversion, a U.S. company reorganizes in a country with a lower tax rate by acquiring or merging with a company there. Inversions allow companies to transfer money earned overseas to the parent company without paying additional U.S. taxes. That money can be used to reinvest in the business or to fund dividends and buybacks, among other things.

Companies like AbbVie, a pharmaceutical with its headquarters just outside Chicago, have tied up with companies overseas to achieve that type of tax cut.

More recently, Walgreen, the huge retail chain, backed away from such a plan under intense pressure in what is becoming an increasingly hot political issue in the United States.

Under a deal between Burger King and Tim Hortons, 3G Capital, the majority owner of Burger King, would continue to own the majority of the shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King.

Both companies have confirmed they are talking and have said Oakville, Ont.-based Tim Hortons and Miami-based Burger King would operate as standalone brands, if the deal goes ahead. (Source: Global News)

Editorial Cartoon, Business, Canada, Tim Hortons, Burger King, merger, corporation, taxes

Posted in: Business, Canada Tagged: Burger King, business, Canada, corporation, Editorial Cartoon, merger, taxes, Tim Horton's

Friday July 23, 2004

July 23, 2004 by Graeme MacKay

July 23, 2004

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – Friday July 23, 2004

Molson and Coor’s Merge

Canada’s Molson and US-based Coors have announced plans for a “merger of equals” of the two family-controlled brewers creating the world’s fifth largest beermaker by volume.

The deal “will create a new company with the operating scale and balance sheet strength to take a leading role in the consolidating global brewing industry,” the companies said in a joint statement. 

With combined beer production of 60 million hectoliters (51 million barrels), the company to be named Molson Coors Brewing Company will be the world’s fifth largest brewing company by volume, the statement said. 

“This transaction allows us to create a stronger company in a consolidating global industry while preserving Molson’s rich heritage as North America’s oldest beer company and Canada’s leading brewer,” said Eric Molson, chairman of the Canadian firm. 

The two firms are steeped in brewing history, with Montreal-based Molson, founded in 1786, as Canada’s oldest brewer, while Coors dates its founding back to 1873, when Adolph Coors created the firm in Golden, Colorado. (Sydney Morning Herald) 

 

Posted in: Canada Tagged: Beer, Bob and Doug MacKenzie, business, Canada, Canadian Corner, Coors, Great White North, hoser, merger, Molson, parody, SCTV, Strange Brew, USA

December 10, 2003

December 10, 2003 by Graeme MacKay
Editorial Cartoon by Graeme MacKay, The Hamilton Spectator Ð December 10, 2003 Tory stalwart Joe Clark partyless The new Conservative Party of Canada lost three MPs yesterday, hours after a proud announcement that it had officially registered for business and begun operations. Former Tory leader Joe Clark and fellow MPs Andre Bachand of Quebec and John Herron of New Brunswick said they couldn't bring themselves to participate in the new organization, formed through a merger with the Canadian Alliance. "This is not my party," Clark said as he arrived for what he called his last Tory caucus meeting. "This is something entirely new. I will not be part of this new party." Herron, like Clark, said he had notified Speaker Peter Milliken that he would serve out his current term but would keep calling himself a Progressive Conservative -- the old party name that was ditched in the merger. "I sought a mandate to be elected as a Progressive Conservative," Herron said. "I plan on fulfilling my mandate." In effect, Clark and Herron will be treated as independents under Commons rules, with reduced opportunity to ask questions, participate in debates and serve on committees. Bachand, who has been courted by the federal Liberals, said he hasn't decided whether to remain in politics but, if he does, it won't be under the banner of the new Conservative party. (Source: Hamilton Spectator) Canada, long good-bye, Jean Chretien, Joe Clark, Progressive , Conservative, Reform, merger, leadership

Editorial Cartoon by Graeme MacKay, The Hamilton Spectator – December 10, 2003

Tory stalwart Joe Clark partyless

The new Conservative Party of Canada lost three MPs yesterday, hours after a proud announcement that it had officially registered for business and begun operations.

Former Tory leader Joe Clark and fellow MPs Andre Bachand of Quebec and John Herron of New Brunswick said they couldn’t bring themselves to participate in the new organization, formed through a merger with the Canadian Alliance.

“This is not my party,” Clark said as he arrived for what he called his last Tory caucus meeting. “This is something entirely new. I will not be part of this new party.”

Herron, like Clark, said he had notified Speaker Peter Milliken that he would serve out his current term but would keep calling himself a Progressive Conservative — the old party name that was ditched in the merger.

“I sought a mandate to be elected as a Progressive Conservative,” Herron said. “I plan on fulfilling my mandate.”

In effect, Clark and Herron will be treated as independents under Commons rules, with reduced opportunity to ask questions, participate in debates and serve on committees.

Bachand, who has been courted by the federal Liberals, said he hasn’t decided whether to remain in politics but, if he does, it won’t be under the banner of the new Conservative party. (Source: Hamilton Spectator)

Posted in: Canada Tagged: Canada, Conservative, Jean Chretien, Joe Clark, leadership, long good-bye, merger, Progressive, reform
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This website contains satirical commentaries of current events going back several decades. Some readers may not share this sense of humour nor the opinions expressed by the artist. To understand editorial cartoons it is important to understand their effectiveness as a counterweight to power. It is presumed readers approach satire with a broad minded foundation and healthy knowledge of objective facts of the subjects depicted.

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