Hi there,
First question here, but lots of chat on our Discord Channel. There is no question this is a massive deal and one that has been rumoured for some time.
First, it really should have no bearing on Telus and BCE as investments. The competition already existed, just as separate entities. I'd say Telus is probably the most 'impacted' from this perspective, but there is absolutely no reason to sell Telus because of this. At least not in my opinion.
THe deal is alo not guaranteed to go through. Given SHAW is trading at a discount to the takeout price, the market is pricing in the risk that the regulators shut it down. In terms of Rogers, i think it overpaid. It paid nearly double the value of the average telecom and is taking on considerable debt to make it happend. Not surprising, the only way it was going to pry SJR away from the Shaw family was to overpay - and I believe it did. Because of this, I'm also not going to rush out an buy Rogers either.
Overall, too early to tell as to if the deal will go through and if Rogers will be successful in achieving the listed synergies. The deal isn't expected to close until the second half of 2022 and then it'll take at least a year or two after that to truly determine if it was a good deal.
Shaw itself could look interesting as it is trading at a discount to the takeout offer, but that is a risk one is taking. If the deal doesn't pass regulator or there are too many concessions, there is a risk the price drops.
Mat