Decision on PTCL-Telenor merger expected in the next fortnight, according to CCP chief
In a surprising turn of events, Telenor has expressed its concern over the delays in the regulatory approval process for the sale of Telenor Pakistan to PTCL. This delay, according to Telenor, is a departure from the clear and consistent trend of telecom consolidation approvals across Asia.
The Competition Commission of Pakistan (CCP) is currently reviewing the PTCL-Telenor merger and the acquisition of Orion Towers by PTCL and Telenor Group. Last month, the CCP sought further clarity from PTCL on key issues related to the proposed acquisition of 100% shareholding in Telenor Pakistan and Orion Towers (Private) Limited.
The merger under review involves PTCL and Telenor Pakistan. If approved, the proposed sale would create a mobile player with a 36% mobile subscriber market share and an estimated 32% revenue share. This market share is well within the range of other approved transactions across Asia, many of which involve higher market concentrations, according to Telenor Group.
Kabir Sidhu, the chairman of the CCP, has informed that a comprehensive order on the merger will be issued within two weeks. He also mentioned that the reviews of major companies' transactions take considerable time.
The proposed sale of Telenor Pakistan to PTCL would create a number two mobile player in Pakistan, as stated by Arnstein Sletmoe, Head of M&A, Telenor Group. This is significant, given that PTCL is a company of strategic importance for Pakistan.
Interestingly, the regulatory approval process for the sale of Telenor Pakistan to PTCL has faced delays 21 months after the transaction was announced in December 2023. This is in contrast to the three-month approval process for the Mobilink-Warid merger in 2016, which resulted in the creation of Jazz, a mobile operator in Pakistan.
Currently, no specific information is available about who is coordinating the distribution of the valuation from the merger of PTCL and Telenor in Pakistan. The CCP is expected to issue an order regarding the PTCL acquisition of Telenor Pakistan and Orion Towers within two weeks.
In a recent Senate Standing Committee on Information Technology meeting, Kabir Sidhu informed about the progress of the PTCL-Telenor merger review. He also stated that the CCP will soon issue a comprehensive order on the merger of both companies.
The CCP's review of the PTCL-Telenor merger and the acquisition of Orion Towers by PTCL and Telenor Group continues, with anticipation building for the upcoming order. The decision is expected to shape the competitive landscape of Pakistan's telecom industry.
