Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Canada Competition Bureau puts conditions on BCE’s acquisition of GLENTEL, (May 6, 2015)
Organizations Mentioned:BCE Inc. | BCE, Inc. | GLENTEL Inc. | Rogers Communications Inc. | Rogers Communications, Inc.
By Linda O’Brien, J.D., LL.M.
BCE Inc. and Rogers Communications Inc. have reached a consent agreement with the Canada Competition Bureau that resolves the Bureau’s concerns that the acquisition by BCE of wireless retailer GLENTEL Inc. and the subsequent sale by BCE of 50 percent of GLENTEL to Rogers would likely result in a substantial lessening of competition in the retail telecommunications sector, the Bureau announced on May 5.
GLENTEL offers wireless telecommunications products and services. It operates more than 359 locations in Canada, including WIRELESSWAVE, Wireless etc…, Tbooth Wireless, MacStation, and certain Samsung stores. In the vast majority of its locations, GLENTEL currently sells the wireless products and services of only BCE and Rogers.
Under the consent agreement, administrative firewalls will be put in place between BCE, Rogers, and GLENTEL to prevent the sharing of competitively-sensitive information, including subscriber information, pricing, and promotional offers. The firewalls are necessary to ensure that the transaction does not provide BCE and Rogers with the ability to share confidential information that could result in consumers paying higher prices for wireless products and services.
The agreement will further ensure that BCE and Rogers do not obtain similar information from their competitors that also distribute through GLENTEL locations. A monitor will be appointed by the Bureau to ensure compliance by the shareholders with the agreement.
"Telecommunications products and services are very important for Canadian consumers,” said Jeanne Pratt, Senior Deputy Commission, Mergers and Monopolistic Practices. “The Bureau is confident that the agreement reached today will ensure that there will not be significant anti-competitive effects for Canadian consumers arising from BCE and Rogers’ acquisition of GLENTEL. We are pleased that BCE and Rogers chose to work with the Bureau to find a solution that addresses the Bureau’s concerns."
Companies: BCE Inc.; Rogers Communications Inc.; GLENTEL Inc.
News: AcquisitionsMergers Antitrust