By Paul Vieira


OTTAWA--Canada's antitrust watchdog said Monday it is seeking to block a $16 billion merger between Rogers Communications Inc. and Shaw Communications Inc., arguing the transaction would "substantially prevent or lessen competition" in the country's wireless market.

Canada's Competition Bureau filed a request with the quasijudicial tribunal that adjudicates antitrust cases to halt the deal. Rogers and Shaw issued a statement Saturday signaling the antitrust watchdog would pursue this action, and the companies said they are prepared to save the deal through the courts.

"The bureau's investigation concluded that the proposed merger would substantially prevent or lessen competition in wireless services," the federal watchdog said in a statement. "The bureau is challenging the merger to shield Canadians from higher prices, poorer service quality and fewer choices which are likely to occur as a result of the merger."

Shares in both Rogers and Shaw fell in trading Monday after their joint statement over the weekend about the Competition Bureau's effort to stop the deal. Shares in Shaw, based in Calgary, Alberta, were trading above 34 Canadian dollars, or the equivalent of US$26. As part of the deal unveiled last year, Rogers was prepared to acquire Shaw at C$40.50 a share.


Write to Paul Vieira at paul.vieira@wsj.com


(END) Dow Jones Newswires

05-09-22 1410ET