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Bell/Telus Merger Inevitable in Coming Years, Say Analysts

1:55 pm on August 15, 2009 | Category: Business, Corporate

A merger of Canada’s two main telecommunications companies is most likely inevitable according to a number of analysts surveyed by Canwest this week.

This isn’t the first time industry watchers have speculated about a Bell/Telus merger, but there appears to be a growing consensus that it’s no longer a question of ‘if’ but ‘when.’

RBC analyst, Jonathan Allen, expects a deal to materialize in 12 to 24 months as a new generation of wireless carriers start eating away at the market share and profits of their larger rivals.

Hoey Associates analyst, Eamon Hoey, agreed with Allen’s analysis but noted that “two years is on the optimistic side.”

“We should wait for new entrants to be in place and show their muscle,” Hoey said. “Before that, a merger would run into trouble with regulators.”

“I would love it if (a merger) could happen tomorrow,” added MacDougall, MacDougall and MacTier analyst, Troy Crandall “The efficiencies and cost savings would be fantastic for investors.”

Crandall agreed, however, that a merger deal will likely run into regulatory problems unless it is properly timed. He expects a deal to occur in two to three years.

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