Telenor: CCP set to announce PTCL acquisition decision soon
Deal News | Jan 20, 2025 | EIN
The Competition Commission of Pakistan (CCP) is on the verge of announcing its decision on Pakistan Telecommunications Company Limited's (PTCL) acquisition of Telenor Pakistan Pvt Ltd and Orion Towers Pvt Ltd. The proposed $500 million deal, which involves acquiring 100% shareholding, is undergoing a Phase-II review by the CCP to ensure it does not violate competition regulations or lead to an abuse of dominant positions in the telecommunications sector. Salman Amin, a CCP member, noted that while PTCL has largely complied with information requests, some data is still pending. The review considers various stakeholders, including regulators and competitors, to assess the economic impact and potential risks of dominance abuses. The CCP's decision aims to ensure fair competition by differentiating between dominance and its potential abuse, informed by sector-specific laws and considerations. Additionally, Amin highlighted issues in past privatization efforts, such as those of PIA, and stressed the importance of thorough due diligence and strategic marketing.
Sectors
- Telecommunications
- Regulatory Affairs
- Aerospace & Defense
Geography
- Pakistan – The entire discussion revolves around companies operating in Pakistan and the involvement of the Pakistani regulatory body, CCP.
Industry
- Telecommunications – The article deals with major telecommunications companies - PTCL and Telenor - involved in a significant acquisition.
- Regulatory Affairs – Involves the CCP's regulatory role in reviewing the acquisition to ensure compliance with competition laws.
- Aerospace & Defense – Mentions the privatization of Pakistan International Airlines (PIA), highlighting regulatory and privatization processes in this sector.
Financials
- $500 million – The value of PTCL's acquisition deal for Telenor Pakistan and Orion Towers.
- Billions of dollars (long term) – Potential economic impact of the acquisition over the long term, as estimated by CCP.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Pakistan Telecommunication Company Limited (PTCL) | Acquiring Company | Company | PTCL is a major telecommunication company in Pakistan looking to acquire Telenor Pakistan and Orion Towers. |
| Telenor Pakistan Pvt Ltd | Target Company | Company | A telecommunications company operating in Pakistan, which is the target of PTCL's acquisition. |
| Orion Towers Pvt Ltd | Target Company | Company | A company owning telecommunications towers in Pakistan, also targeted in PTCL's acquisition. |
| Competition Commission of Pakistan (CCP) | Regulatory Body | Government | The Pakistani regulatory agency responsible for ensuring fair competition and reviewing the proposed acquisition. |
| Salman Amin | Speaker | Person | Member of the CCP, speaking in media about the progress and details of the acquisition review. |
| Pakistan International Airlines (PIA) | Reference - Discussion on Privatization | Company | Mentioned in the context of previous privatization efforts in Pakistan, unrelated to the main acquisition. |