The Competition Commission of Pakistan (CCP) is likely to approve the merger of Telenor Pakistan with Pakistan Telecommunication Company Limited (PTCL), provided its settlement option is accepted. This move follows the intervention of the Special Investment Facilitation Council (SIFC) in the ongoing merger process, The Express Tribune reported.Â
According to the news report, the proposed settlement includes a $1 billion investment by UAE-based telecom company e& (formerly Etisalat), which holds management control of PTCL. The CCP has requested further details and timelines on how PTCL plans to allocate this investment.
PTCL’s merger application has been under review for nearly a year, with delays caused by the company’s failure to submit necessary documents to address numerous queries from the CCP. In a letter to PTCL’s lawyer, Rahat Kaunain Hassan, the CCP referred to Section 11(11) of the Competition Act 2010 and offered a new settlement option.
According to Section 11 of the Competition Act, the CCP has the authority to either prohibit the merger or approve it with specific conditions. This provision also allows the commission to approve the transaction if the companies involved sign legally enforceable agreements to address the commission’s concerns.
The approval has been delayed as PTCL has yet to provide critical documents addressing queries related to the merger, and unresolved issues, including an $800 million outstanding payment, remain a hurdle. Although a previous settlement was reached for the release of $640 million, PTCL has not yet paid this amount.
The $1 billion investment proposal comes after PTCL’s management approached the SIFC for assistance. In addition, PTCL is under scrutiny from the Pakistan Telecommunication Authority (PTA), which has issued notices over PTCL’s dominant market position.
During the second phase of the merger review, the CCP sought information from the PTA to ensure the merger would not harm market competition. PTCL, however, has contested the PTA’s objections in the Sindh High Court rather than addressing them directly. The merger application, initially submitted on February 29, 2024, was revised on March 6, 2024, after it was found to contain flaws.
