The Competition Commission of Pakistan (CCP) has stated that the pre-merger application for PTCL’s acquisition of Telenor Pakistan is presently under review.
In a comprehensive clarification, CCP highlighted that PTCL aims to obtain 100 percent shareholding of Telenor Pakistan (Private) Limited and Orion Towers Private Limited.
According to CCP, the pre-merger application was submitted by PTCL’s legal representatives on February 29, 2024. Initially, there was an error in the fee submission, which was rectified with the outstanding fee sent to the Commission on March 6, 2024. CCP requested additional information on March 20, 2024, to facilitate thorough due diligence. However, the necessary information is still pending from PTCL’s legal representatives.
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The Commission is mandated to complete its due diligence within 30 working days after receiving all required information. The commencement of the 30-day timeframe for the initial phase review will begin upon the submission of the outstanding information by PTCL’s legal representatives.
It is important to note that CCP’s merger department is currently handling 21 applications, including PTCL’s proposed acquisition of Telenor. Previously, there were five active players in Pakistan’s mobile telecom sector: Jazz, Zong, Telenor Pakistan, Warid, and Ufone. Jazz acquired Warid in 2016, and PTCL owns Ufone as a wholly-owned subsidiary. The acquisition of Telenor by PTCL would decrease the number of competitors providing telephony services in the market.
Furthermore, CCP has received concerns from a competitor regarding PTCL’s intended acquisition. The Commission assures that due diligence will be conducted diligently.
CCP has also urged the media to refrain from speculating and spreading premature information regarding the merger.
