The Rogers Building in Toronto on April 22, 2014.Darren Calabrese/The Canadian Press
Canada’s competition watchdog has cleared Rogers Communications Inc.’s RCI-B-T $4.7-billion acquisition of rival BCE Inc.’s BCE-T stake in Maple Leaf Sports & Entertainment.
On Thursday, Rogers said it received a “no-action letter” from the Competition Bureau, indicating that it does not intend to challenge the deal, which would give Rogers a 37.5-per-cent stake in the professional sports and entertainment company.
MLSE is the owner of the NHL’s Toronto Maple Leafs, NBA’s Toronto Raptors, CFL’s Toronto Argonauts and MLS’s Toronto FC. The deal values the sports empire at $12.5-billion, a record for Canadian sports franchises.
Rogers is still awaiting league approvals and the green light from the Canadian Radio-television and Telecommunications Commission.
If it receives those sign-offs, the company will own 75 per cent of MLSE. The deal is expected to close by the middle of next year.
Rogers has the right to buy the remaining quarter of the company from MLSE’s chairman, Larry Tanenbaum, in 2026.
“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, chief executive officer of Rogers, in a release Friday afternoon.
Rogers has said that securing its ownership of live sports is a crucial part of its customer retention strategy, as Canadians continue to cut the cord and opt for streaming platforms instead.
In September, Mr. Staffieri told The Globe that having control of MLSE “will make it easier for fans and viewers to watch what they want, when they want.”