On Monday, the Competition Commission of Pakistan (CCP) stated that it is still reviewing the pre-merger application concerning PTCL’s acquisition of Telenor Pakistan.
Providing a detailed clarification, the CCP revealed that PTCL aims to obtain 100 percent shareholding of both Telenor Pakistan (Private) Limited and Orion Towers Private Limited.
The CCP received the initial pre-merger application from PTCL lawyers on February 29, 2024. Initially, there was an issue with the submitted fee, which was corrected by March 6, 2024.
Subsequently, on March 20, 2024, the CCP requested additional information from PTCL lawyers to facilitate its due diligence. However, the necessary information is still pending from their side.
Once PTCL lawyers furnish all the required information, the Commission has a 30-working-day period to complete its due diligence for the first phase review.
It’s important to note that the CCP’s merger department is currently handling 21 applications, including PTCL’s proposed acquisition of Telenor, which would decrease the number of competitors in the mobile telecom market.
Initially, Pakistan’s mobile telecom industry had five active players: Jazz, Zong, Telenor Pakistan, Warid, and Ufone. In 2016, Jazz acquired Warid, and PTCL’s subsidiary Ufone operates independently. The acquisition of Telenor by PTCL would further consolidate the market.
Furthermore, a competitor has raised concerns with the CCP regarding PTCL’s planned acquisition, which the Commission will also address during the due diligence process.
The CCP emphasized the importance of avoiding speculation and premature dissemination of information by the media regarding the merger.
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