Islamabad, March 26, 2024 – The Competition Commission of Pakistan (CCP) has announced its examination of the proposed merger between Pakistan Telecommunication Company Limited (PTCL) and Telenor, aiming to address concerns and ensure transparency in the process.
In a statement released on Tuesday, the CCP clarified that certain news outlets had disseminated misleading information regarding the progress of the pre-merger application filed by PTCL. The commission emphasized its commitment to a thorough review of the proposed merger, ensuring compliance with regulatory standards.
PTCL aims to acquire 100% shareholding of M/s. Telenor Pakistan (Private) Limited and M/s. Orion Towers Private Limited. The pre-merger application was initially received on February 29, 2024, by PTCL lawyers. However, an initial submission error occurred with the application fee, which was subsequently rectified on March 6, 2024.
The CCP requested additional information on March 20, 2024, to facilitate due diligence. As of the latest update, the requisite information is still pending from PTCL lawyers. The commission operates within a 30-working-day timeframe to complete its due diligence once all necessary information is provided.
It’s important to note that the CCP’s merger department is currently handling 21 applications, with PTCL’s proposed acquisition of Telenor being one of them. Prior to this merger, Pakistan’s mobile telecom industry featured five major players, including Jazz, Zong, Telenor Pakistan, Warid, and Ufone. Jazz acquired Warid in 2016, while PTCL owns Ufone as a wholly-owned subsidiary.
The potential acquisition of Telenor by PTCL raises concerns about reducing competition in the telephony services market. The CCP has acknowledged receiving objections from a competitor regarding PTCL’s intended acquisition and reassured stakeholders of conducting a comprehensive review in due course.
Media outlets are urged to refrain from speculative reporting and premature dissemination of information regarding the merger. Instead, they are encouraged to seek accurate updates directly from the Commission to ensure the public receives reliable and verified information.
The examination of the PTCL-Telenor merger underscores the CCP’s commitment to promoting fair competition and safeguarding consumer interests in Pakistan’s telecommunications sector. As the review process unfolds, stakeholders await further developments, anticipating a decision that balances industry dynamics with regulatory requirements.
