Shaw's Canwest takeover clears another hurdle

Canada's Competition Bureau has given the go-ahead for Shaw Communications to acquire 100 per cent of the television assets of Canwest Global Communications.

All that stands in the way of Shaw completing a deal for the Global Television Network and various specialty channels is CRTC approval. A hearing is set for September.

"We look forward to moving ahead with this transaction. We are certain it will strengthen the Canadian broadcasting system to the benefit of all Canadians," said Jim Shaw, the CEO and vice-chair of Shaw.

"Canwest is now one step closer to emerging from protection under the Companies' Creditors Arrangement Act," he added.

The Ontario Superior Court, which was overseeing Canwest's restructuring, approved the deal in July clearing away the first hurdle toward acquisition.

The $2-billion deal will allow Canwest to emerge from bankruptcy protection and give Shaw, a western Canadian cable giant, 11 Global TV stations along with a number of highly profitable cable channels such as HGTV, the Food Network and Showcase.

In announcing its approval Friday, the Competition Bureau said the deal would not likely give rise to a substantial lessening or prevention of competition in Canada's broadcast industry.