Pakistan clears ‘landmark’ telecom merger of PTCL, Telenor

The Competition Commission of Pakistan (CCP) has granted antitrust clearance to the Pakistan Telecommunication Company Limited (PTCL) to acquire Telenor Pakistan and Orion Towers, marking a major consolidation move in the country’s telecom sector.

The Phase-II Order, issued on October 1, approves the proposed transaction under Section 11(2) of the Competition Act, 2010, and Regulation 6 of the Competition (Merger Control) Regulations, 2016. The approval follows a detailed review of a pre-merger application filed by PTCL and Telenor Pakistan BV (TPBV).

'Most complex deal' in global telecom industry

Speaking to the media following the decision, CCP Chairman Dr. Kabir Ahmed Sidhu said the merger had wide-reaching implications beyond Pakistan and was “one of the most complex transactions ever seen in the global telecom industry.”

“We ensured a level playing field for all telecom operators,” the chairman said. “This merger is not just a local issue — it involved multiple telecom markets and was assessed with global best practices in mind.”

The commission reviewed dozens of similar international transactions before reaching its decision, the chairman added.

“We closely studied merger orders from the United States, the United Kingdom, and the European Union to understand competition dynamics and ensure fairness.”

Better services for consumers

According to the CCP, the core objective behind the merger is to enhance service quality and product offerings for Pakistani consumers.

“All telecom operators will continue to provide services on an equal footing,” the CCCP chairman assured, adding that the decision prioritizes both consumer welfare and market competitiveness.

Background and next steps

PTCL signed a Share Purchase Agreement (SPA) with TPBV on August 14, 2024, to acquire 100% of the share capital of Telenor Pakistan and Orion Towers. The agreement followed board-level approval within PTCL.

The transaction, however, remained subject to additional regulatory and corporate approvals, as well as the completion of closing formalities and execution of necessary instruments, PTCL said in a notice to the Pakistan Stock Exchange (PSX).

“We will continue to notify the exchange of any material developments in line with applicable laws,” PTCL stated.

Strategic shift in industry

Analysts see the merger as a significant development in the Pakistani telecom sector, which is grappling with rising infrastructure costs and a need for consolidation. If completed, the deal would create one of the largest telecom operators in the country by subscriber base and infrastructure reach.