ISLAMABAD: “The Competition Commission of Pakistan (CCP) is all set to announce the decision regarding Pakistan Telecommunication Company Limited’s acquisition of Telenor Pakistan Pvt Ltd and Orion Towers Pvt Ltd soon, keeping in mind what remedies may be linked to mitigate the concern of lessening competition and abuse of dominance or the other way around”.
This was revealed by Salman Amin, Member (Office of Fair Trade, Cartels & Office of International Affairs), Competition Commission of Pakistan (CCP), while speaking at Aaj TV’s programme “Paisa bolta hay with Anjum Ibrahim”.
Amin also admitted that some information sought from the PTCL, is still awaited.
Telenor, Orion Towers: CCP completes formalities of PTCL’s acquisition
The CCP has completed all cordial formalities of Phase-II review of PTCL’s acquisition of 100 percent shareholding in Telenor Pakistan Pvt Ltd and Orion Towers Pvt Ltd and the decision is expected to be announced anytime soon.
The CCP as per its mandate is to ensure promote fair competition in all sphere of economy, said Member CCP, adding that whenever there is merger and acquisition case, the Commission is look into the matter to ensure that competition was not affected.
Talking about PTCL’s acquisition of Telenor, Amin said that it is one of the big and unique case particularly in this sector and comparing it with Jazz and Warid merger may not be right as it is different in many ways from that.
“As per our law if there is no risk of misuse of dominance, we clear merger cases in Phase-1 with all transactions”, said Member CCP, adding that but when the Commission observe that there are certain elements and risk of abusing dominant position or lessening of competition, then such cases are taken to Phase-II transaction.
Phase-II review is very deep dive and needs to look it from different angles where stakeholders including regulators, competitors as well as down stream and up stream players in the relevant market are being involved and conduct proper hearing.
Since it is quite huge transaction with a value of around $500 million itself and if take its economic impact in long term may get certain billions of dollars impact over the economy, said Amin, adding all due care was taken in this case, by engaging all stakeholders and conducting hearings.
He further said that there were issues as it was significant market player (SMP) as per Pakistan Telecom Act so the Commission had to look into sectors laws as well, and hence they are now in final stages, expecting the decision would be issued very soon.
“We also look at risk of lessening of competition in merger cases. After this the CCP also look at in such cases whether dominant position is something bad or abuse is bad. We have to differentiate in these things and we also see their licenses whether these are not abusive”, said Amin, adding that after this when they come to the CCP for merger acquisition.
We are going for this decision and we will see what will be impact keeping in mind the concerns and what remedies are being linked to mitigate or the other way around, said Amin.
Replying to a question Amin said that during the process and hearing CCP as well as other stakeholders and competitors raised certain questions and sought information. The PTCL has largely provided the information and the remaining would be received.
He said dominant position is not an issue, abuse is an issue and that is why the CCP was moving very carefully. We cannot take decision in isolation and also take into consideration developments happening in the sector, he added.
Talking about PIA privatisation Amin said that lack of proper due diligence on part of the seller (government) was not carried which resulted into a failure. Due diligence on part of seller is corporate affairs, legal affairs, HR, loaning position, and contingencies, after which transaction structure is flout in the market.
In PIA case several things were done in haste. He recommended for proper due diligence, marketing stratgey to make PIA privitisation a success this time around.
Copyright Business Recorder, 2025
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