PTCL’s Merger of Telenor not Finalized yet – Why?

A source recently revealed shocking news according to which the merger of PTCL and Telenor has not yet been completed. The Competition Commission of Pakistan (CCP) responsible for controlling monopoly in the market has said that the agency is still reviewing the pre-merger application for PTCL’s acquisition of Telenor Pakistan. While clarifying, CCP reiterated that PTCL plans to acquire 100% shareholding of Telenor Pakistan (Private) Limited and Orion Towers Private Limited.

Furthermore, CCP said that the PTCL lawyers submitted a pre-merger application on February 29, 2024. First, the application was submitted with an incorrect fee, then the remaining outstanding fee was sent to the CCP on March 6, 2024.

Afterward, on March 20, 2024, CCP requested further information to finalize its due diligence. However, the required information has not been provided by the PTCL lawyers as of yet.

CCP has 30 working days to conclude its due diligence after all the requisite information is submitted. After PTCL lawyers provide the outstanding information, then the mentioned time of 30 working days for the first phase review will begin.

It is pertinent to mention here that 5 telecom companies offering cellular services in the Pakistani market initially including Jazz, Zong, Telenor Pakistan, Warid, and Ufone. However, Jazz acquired Warid in 2016. Ufone is a wholly-owned subsidiary of PTCL. Therefore, the acquisition of Telenor by PTCL will decrease the number of competitors with CCP already receiving concerns from a competitor regarding the intended acquisition by PTCL.