Rogers Communications Inc agreed to acquire rival Shaw Communications Inc in a deal valued at about C$26 billion, the Canadian telecom operator said on Monday, in a move that would help ramp up its 5G networks against the backdrop of a consolidation in the broader telecoms industry.

Rogers said Shaw shareholders will receive C$40.50 per share, representing a premium of nearly 70% premium to Shaw's last close.

As part of the deal, expected to close in the first half of 2022, the combined company will also invest C$2.5 billion in 5G networks over the next five years across Western Canada, Rogers said.