Decision on PTCL-Telenor merger expected within a fortnight: Chairman of Competition Commission of Pakistan (CCP)
The Competition Commission of Pakistan (CCP) is currently reviewing the proposed merger between PTCL and Telenor Pakistan, along with Orion Towers, as announced in December 2023. The Senate Standing Committee on Information Technology was briefed about this matter by CCP Chairman, Kabir Sidhu.
PTCL, a company of strategic importance for Pakistan, according to Sidhu, is set to acquire Telenor Pakistan and Orion Towers in the proposed sale. If approved, the merged company would result in a mobile player with a market share similar to that of Jazz, which was created by the Mobilink-Warid merger in 2016. The new entity is expected to hold a 36% mobile subscriber market share and an estimated 32% revenue share.
However, Telenor has expressed concern about delays in the regulatory approval process for the sale. Despite similar transactions being approved in a timely manner across Asia, the approval process for the sale of Telenor Pakistan to PTCL is facing delays, according to the telecom giant.
Arnstein Sletmoe, Head of M&A at Telenor Group, stated that the proposed sale is within the range of other approved transactions across Asia, many of which involve higher market concentrations. He also expressed his expectation for the takeover of PTCL by Telenor, although a decision has been pending for 21 months since the announcement in December 2023, with no expected resolution date mentioned.
Last month, the CCP sought further clarity from PTCL on key issues related to the proposed acquisition. The CCP's statement mentions that it will soon issue a comprehensive order on the merger of both companies. Earlier reports suggest that the CCP is expected to issue this order within two weeks.
The creation of Jazz, with a 38% mobile subscriber market share and an estimated 44% revenue market share, from the Mobilink-Warid merger in 2016 was approved in just three months. This precedent sets a benchmark for the speed of regulatory approval for such mergers in Pakistan.
Sidhu, in his briefing to the Senate Standing Committee, informed that reviews of major companies' transactions take considerable time. Despite this, the CCP is working diligently to issue a comprehensive order on the PTCL-Telenor merger as soon as possible. The outcome of this review will have significant implications for the Pakistani telecom industry.
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