CCP greenlights phase 1 of Telenor acquisition by Ufone/PTCL

ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved phase-I of the acquisition process of 100% Telenor shareholding by Ufone/PTCL, sources said on Saturday.

This significant development marks a major milestone in the consolidation of Pakistan’s telecom industry as both companies have been informed of this development, marking the beginning of their merger into a single entity.

Sources privy to the development told Daily Ausad that Telenor and Ufone have been directed to complete the necessary procedures and documents for phase II, which is expected to be completed in the coming months. Once the process is complete, the merged company will serve over 6.7 million mobile phone users, including Telenor’s 3.4 million customers in Pakistan.

This merger is expected to boost competition and coverage in Pakistan’s mobile phone industry, leading to improved services and options for consumers. The merged company will have a stronger presence in the market, enabling it to invest in network expansion, modernization, and innovation, ultimately benefiting mobile phone users across Pakistan.

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Under the Competition Act 2010, the phase-I review of mergers is completed within 30 days after the acceptance of the application and the basic criteria for the phase-II review is to determine if the merger does not strengthen a dominant position. The PTCL holds 100pc stake in Ufone, while the merger of PTCL/Ufone and Telenor Pakistan is less likely to pose any market distortion in the cellular landscape of Pakistan.

It is pertinent to mention that the CCP’s merger department is processing 21 applications at the moment. Acquisition of Telenor by PTCL is one of those applications.

On February 12, 2016, CCP had permitted the process of buying Warid by mobile phone service operator Jazz. Moreover, sources claimed that the government is taking serious steps to complete the process of buying Telenor and proceedings are likely to be completed within three months. The combined assets of Ufone and Telenor will be more than one billion dollars.