Rogers Communications Inc entered into an agreement to purchase Shaw Communications Inc in a $ 26 billion business including debt

Under the scheme, Rogers will pay $ 4050 in cash for all Class A and B Shares issued and outstanding by Shaw

As part of the deal, the companies announced that Rogers will invest $ 2.5 billion in 5G networks across Western Canada over the next five years

Rogers also says it will create a new $ 1 billion fund designed to connect rural, remote, and indigenous communities across western Canada with high-speed internet services

“This combination of two great companies will create more jobs and investment in Western Canada, connect more people and businesses, provide world-class services and infrastructure nationwide, and increase competition and choice for Canadian consumers and businesses,” said Joe Natale, CEO from Rogers, in a statement

The combined company will establish a regional headquarters in the west of Calgary, home to the President of Western Business and other senior executives

Brad Shaw, Shaw Executive Chairman and CEO, said the transaction will create benefits for generations to come

“The combination of the companies unleashes tremendous shareholder value and creates a truly national vendor with the ability to rapidly invest larger resources to build the wired and wireless networks that all Canadians need over the long term,” said Brad Shaw in explanation

Rogers said it had committed funding to cover the cash portion of the deal while trading approximately 60 percent of the Shaw family’s shares for 236 million Rogers B-class shares

Brad Shaw and another Shaw family director who becomes one of Rogers’s largest shareholders, are appointed to Rogers’s board of directors

The transaction, which requires shareholder approval, is subject to other customary closing conditions and regulatory approvals from Canada

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World News – CA – Rogers to buy Shaw for $ 26 billion