Key Points
TORONTO, April 2 (Reuters) - Canada's move to clear Rogers Communications Inc's C$20 billion ($15 billion) bid for Shaw Communications Inc after two years should have been a balm to markets..
Instead, dealmakers are worried about potential government intervention in mergers involving other sensitive sectors...
Osborne worries there could be other cases where the minister decides he does not trust the competition bureau and wants to start politically interfering in mergers...
"What Rogers/Shaw illustrates is that today Canada's competition regime is highly political with unpredictable outcomes," said Neil Selfe, chief executive at advisory firm INFOR Financial.. "In Canada, we have a toothless regulatory regime" and a political ... (operative who) ... hasn't said when he is or isn't going to act, and that just creates uncertainty and ultimately has a chilling effect on M&A."..
To be sure, dealmaking in Canada follows the rule book, and political interference is a rarity, lawyers say.. Jennifer Quaid, associate professor and vice-dean research, faculty of law, University of Ottawa, said politicians should not intervene in cases where tribunals already make a decision...
