Cable companies Rogers Communications Inc. of Toronto, and Le Groupe Vidotron lte of Montreal have agreed to merge and create a $25 billion multimedia enterprise.The stock-swap merger will result in...
March 1, 2000
Cable companies Rogers Communications Inc. of Toronto, and Le Groupe Vidotron lte of Montreal have agreed to merge and create a $25 billion multimedia enterprise.
The stock-swap merger will result in the creation of Canada’s largest broadband communications company and one of the larger cable system operators in North America.
The merged company will be active in the fields of cable television, Internet access, wireless communications, business telecommunications, Internet portals, publishing, radio, security and residential telephony. It will be able to reach over 5.1 million homes, and will have 3.7 million cable customers and 260,000 high-speed Internet access customers.
The companies say the transaction is a major step towards establishing a fully integrated provider positioned to offer a complete bundle of communications services and scaled to compete effectively in the combined Quebec, Ontario and British Columbia markets.
“This merger will extend our vision to a larger market,” says Claude Chagnon, President & Chief Executive Officer of Le Groupe Vidotron. “Our customers will benefit from the latest communications technologies and services available, thanks to our leading involvement in IP telephony and interactive services and to Rogers’ broad scope of activities.”
The merger — one of the largest mergers in Canadian history — is expected to be complete in April, 2000.