Bell Canada/Ziply Deal Could Get Caught in Tariff Fight: New Street
The Committee for the Assessment of Foreign Participation in the U.S. Telecommunications Services Sector, also known as Team Telecom, notified the FCC this week that it's reviewing Bell Canada's proposed acquisition of Ziply Fiber (see 2412090045). The deal is straightforward, and “there is no significant risk to the transaction being approved,” New Street's Blair Levin said Thursday. But, he added, approval may get caught up in President Donald Trump’s pursuit of tariffs.
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“As Trump has been willing to use collateral issues to justify tariffs, we can’t dismiss the possibility that Trump will insist that the FCC not allow a Canadian company to buy an American company without some concession on tariffs,” Levin told investors. “We cannot know what the status of Canadian/U.S. relations will be from now until the transaction is approved, but there are other issues, including related to NATO and European relations, regulation of American tech companies, [and] support for U.S. positions in international arenas such as the International Telecommunication Union, that could put this transaction in the crosshairs of Trump.”
Team Telecom's notice said it's assessing "whether granting the Application will pose a risk to the national security or law enforcement interests of the United States.” The companies said in December that Ziply has fiber assets in Washington, Oregon, Idaho and Montana.
The FCC is seeking comments on the transaction, with initial comments due Feb. 28, replies March 7. The short comment cycle suggests "the FCC does not anticipate either a significant volume or complexity of comments," Levin said.