The CRTC has approved Corus Entertainment’s $2.65-billion acquisition of Shaw Media and its assets.

The merger was announced earlier this year and presented as a corporate reorganization under Shaw Communications, in which Shaw Media shares would transfer to Corus. The Shaw family is a majority shareholder in Corus Entertainment.

Given that both companies have been effectively controlled by Shaw family patriarch JR Shaw, the CRTC revealed in its decision today that no tangible benefits will be compelled as part of the purchase price of Shaw Media. While the regulator said the companies have operated under separate management, control over both entities have effectively remained with the same person from a regulatory perspective and thus no change of ownership – a condition to spark tangible benefits – has taken place.

“The CRTC conducted a full public process in reviewing this transaction consistent with its long standing policies. This decision will help position Corus Entertainment Inc. as a stronger player in the market and help elevate more Canadian-made programming to new heights both here in Canada and around the world,” CRTC chairman and CEO Jean-Pierre Blais said in a statement.

“This helps support the entire audiovisual ecosystem in Canada. From a regulatory perspective, Corus and Shaw have always been considered as a single voice in the Canadian marketplace since the 1990’s. This decision changes nothing in that respect,” Blais said.  With all regulatory and other approvals obtained, Corus Entertainment said it plans to close the deal on April 1, according to a release from the company.

Corus shareholders voted to approve the deal earlier this month, with almost 80% of the votes in favour of the acquisition, despite a persistent campaign against the deal by activist investor Catalyst Capital Group. The company had claimed that the deal favoured the Shaw family over shareholders. 

In a statement released shortly after the decision was announced, the Canada Media Producers Association raised concerns about the implications of the approval of the Corus-Shaw deal could have on Canada’s independent production community.

“Today’s CRTC decision sends a shiver down the spine of Canada’s independent producers, who now face the hard realities of a hyper-consolidated broadcasting sector,” said Reynolds Mastin, president and CEO of the CMPA, in a statement. The CMPA also said in its statement that it fears “with approval of this transaction, Corus will use its  greater negotiating power to extract even more rights and revenues from independent producers.”

The statement also noted the CMPA had asked the CRTC to apply a condition of approval to the Corus-Shaw, which would have seen the implementation of safeguards it said would provide indie producers with “a level playing field” when negotiating with the broadcaster. The CMPA said no such safeguards were included in the approval decision.