PTCL Acquisition: CCP Shares Conditions
Deal News | Jan 25, 2025 | EIN
Pakistan Telecommunication Company Limited (PTCL) Group is awaiting a decision from the Competition Commission of Pakistan (CCP) regarding its acquisition of Telenor Pakistan (Pvt) Ltd and Orion Towers (Pvt) Ltd. The CCP has communicated certain conditions related to the decision, particularly concerning PTCL's potential abuse of a dominant position in the Long Distance International (LDI) business, as stipulated under Section 3 of the Competition Act. PTCL currently holds 50.5 percent of the retail LDI market and would control 61 percent post-acquisition. Additionally, the merger includes combining PTCL's Ufone 12.4 percent mobile telecommunications market share with Telenor's 24 percent, resulting in a significant 37 percent market share. The CCP has concluded its Phase-II review, focusing on the transaction's impact on critical telecom submarkets. The impending decision by the CCP will address mitigating the potential lessening of competition or abuse of dominance. PTCL has yet to respond to the CCP's review, but the decision is anticipated soon.
Sectors
- Telecommunications
- Regulation and Compliance
Geography
- Pakistan – The companies involved and the regulatory body, the CCP, are based in Pakistan, and the acquisition will have significant implications for the country's telecom market.
Industry
- Telecommunications – This article's primary focus is on the telecommunications industry due to PTCL's acquisition involving major players, Telenor Pakistan and Orion Towers, within this sector.
- Regulation and Compliance – The role of the Competition Commission of Pakistan (CCP) highlights the regulatory and compliance challenges faced during acquisitions, particularly concerning market dominance.
Financials
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Pakistan Telecommunication Company Limited (PTCL) Group | Target and Bidding Company | Company | PTCL is the acquiring entity looking to expand its market share through the acquisition of Telenor Pakistan and Orion Towers. |
| Telenor Pakistan (Pvt) Ltd | Selling Company | Company | Telenor Pakistan is one of the main assets being acquired by PTCL. |
| Orion Towers (Pvt) Ltd | Selling Company | Company | Orion Towers is another key asset in the acquisition by PTCL. |
| Competition Commission of Pakistan (CCP) | Regulatory Body | Government | CCP is responsible for ensuring fair competition and is currently reviewing the acquisition. |
| Special Investment Facilitation Council (SIFC) | Facilitator | Government | SIFC is engaged with PTCL in addressing the acquisition matter. |