XM Canada and Sirius Canada said this week they will merge on June 21st after having received the final regulatory and government approvals for the deal.

The merger comes five and a half years after the two organizations began offering satellite radio service in this country.

While the news is great for shareholders, consumers may not be so lucky. The merger will mean the combined company will have a monopoly on satellite radio service in Canada.

Despite the anti-competitive nature of the deal, it was approved by the CRTC. The federal regulator said it approved the deal after the two organizations pleaded "significant financial challenges" and could only attain profitability if competition between the two firms was eliminated.

In an attempt to soothe angry consumers who complain the merger will mean higher prices, the commission is requiring that current subscription pricing must be maintained until the end of 2011 after which the new company will be free to pass on price increases to new customers.

Under the terms of the merger, former Sirius Canada and XM Canada shareholders will own 58 and 42 percent of the combined company respectively. Breaking it down: CSRI Inc., an entity controlled by John Bitove, the chairman of CSR will have a 30.0 per cent voting interest (22.7 per cent equity interest); CBC/Radio-Canada 20.2 per cent voting interest (15.0 per cent equity interest); Slaight Communications 20.2 per cent voting interest (15.0 per cent equity interest); Sirius XM Radio Inc. 25.0 per cent voting interest (37.1 per cent equity interest); with the remainder being widely held.

Discuss the Sirius and XM Canada merger in Digital Home's Sirius XM Satellite Radio forum .