Rogers Provides Update on Its Acquisition of Bell’s 37.5% Stake in MLSE

Rhea-AI Summary

Rogers Communications has received clearance from the Competition Bureau to proceed with its acquisition of Bell's 37.5% stake in Maple Leaf Sports & Entertainment (MLSE) for C$4.7 billion. The Competition Bureau issued a 'no-action letter' on December 12, 2024, indicating it won't challenge the acquisition. The deal still requires league approvals and CRTC approval. Upon completion, Rogers will become the majority owner of MLSE, which is described as one of the most prestigious sports and entertainment organizations globally. The acquisition aligns with Rogers' core business strategy focusing on live sports and entertainment.

Positive

• Received Competition Bureau clearance for MLSE stake acquisition
• Will become majority owner of prestigious sports organization
• Strategic alignment with core business in sports and entertainment
• Expansion of sports and entertainment portfolio

Negative

• Significant capital expenditure of C$4.7 billion required
• Deal still subject to multiple regulatory approvals
• Potential regulatory risks from CRTC and league approvals pending

TORONTO, Dec. 13, 2024 (GLOBE NEWSWIRE) -- Rogers Communications (TSX: RCI.A and RCI.B) (NYSE: RCI) today announced it has received clearance from the Competition Bureau to proceed with the acquisition of Bell’s 37.5% stake in Maple Leaf Sports & Entertainment.

Rogers and Bell received a "no-action letter" on December 12, 2024, from the Bureau, indicating that the Commissioner of Competition does not intend to challenge Rogers acquisition of Bell’s interest in MLSE.

The deal is subject to league approvals and approval from the CRTC.

“This reflects an important step in securing approvals and expanding our ownership of MLSE, one of the most prestigious sports and entertainment organizations in the world,” said Tony Staffieri, President and CEO, Rogers. “As Canada’s leading communications and entertainment company, live sports and entertainment are a critical part of our core business strategy.”

In September, Rogers announced a deal to acquire Bell’s stake in MLSE for C$4.7 billion to become majority owner of MLSE. 

About Rogers Communications Inc
Rogers is Canada’s leading communications and entertainment company and its shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A and RCI.B) and on the New York Stock Exchange (NYSE: RCI). For more information, please visit rogers.com or investors.rogers.com.

For further information:

Media Relations
media@rci.rogers.com
1-844-226-1338

Investor Relations
investor.relations@rci.rogers.com
1-844-801-4792

FAQ

How much is Rogers paying for Bell's stake in MLSE?

Rogers is paying C$4.7 billion to acquire Bell's 37.5% stake in MLSE.

What approvals does Rogers (RCI) still need for the MLSE acquisition?

Rogers still needs approvals from the sports leagues and the CRTC to complete the MLSE acquisition.

When did Rogers receive Competition Bureau clearance for the MLSE deal?

Rogers received the Competition Bureau clearance through a 'no-action letter' on December 12, 2024.

What percentage stake in MLSE will Rogers own after the acquisition?

The press release indicates Rogers will become the majority owner but doesn't specify the exact percentage stake after the acquisition.

How does the MLSE acquisition align with Rogers' (RCI) business strategy?

The acquisition aligns with Rogers' core business strategy as Canada's leading communications and entertainment company, where live sports and entertainment are critical components.