CCP Approves PTCL-Telenor Pakistan Acquisition Deal

The Competition Commission of Pakistan (CCP) has officially granted Phase-II approval for Pakistan Telecommunication Company Limited’s (PTCL) proposed acquisition of Telenor Pakistan, signaling a significant development in the ongoing consolidation of the country’s telecom industry.

According to an official notice submitted to the Pakistan Stock Exchange (PSX), PTCL and Telenor Pakistan BV (TPBV) signed a Share Purchase Agreement (SPA) on August 14, 2024. The agreement covers the full acquisition of the entire issued share capital of both Telenor Pakistan (Private) Limited and Orion Towers (Private) Limited.

“We highly appreciate the Commission’s thoroughness in safeguarding the future outlook and long-term sustainability of Pakistan’s telecom sector. We are especially thankful to our customers, partners, and the wider telecom community who have been eagerly looking forward to this historic announcement,” PTCL stated in response to the approval.

PTCL also expressed gratitude to the Competition Commission for successfully concluding Phase II of the regulatory review and assured full cooperation throughout the process. The company emphasized its commitment to adhere to all directions from regulatory bodies and compliance with applicable national laws as it moves forward with the acquisition.

This intra-sector merger marks a pivotal advancement for Pakistan’s telecom industry, combining the strengths of PTML (Ufone) and Telenor to enhance customer experience, network quality, coverage, and the introduction of innovative digital services. The consolidation is expected to improve operational efficiency, build resilient infrastructure, and foster a more competitive telecom landscape.

Moreover, the unified entity aims to bolster nationwide connectivity, drive technological innovation, and contribute significantly to the government’s vision of a digitally empowered Pakistan.

The CCP’s approval follows an extensive and detailed review of the pre-merger application in accordance with the Competition Act, 2010, and the Competition (Merger Control) Regulations, 2016. The commission’s Phase-II order confirms the transaction’s compliance with all relevant legal provisions.

However, the notice highlighted that finalization of the deal remains contingent on securing other corporate and regulatory approvals, completing formalities, and signing the necessary agreements.

This review process stands out as one of the most comprehensive in the CCP’s history, utilizing the Substantial Lessening of Competition (SLC) Test to carefully assess the merger’s potential impact on market competition. The Commission evaluated various sub-markets including cellular mobile services, long-distance and international services, fixed-line, leased lines, and IP bandwidth.

Between September 2024 and August 2025, the CCP conducted multiple open hearings and confidential sessions with PTCL, Telenor, and other stakeholders. They demanded extensive documentation, such as regulatory accounts, interconnection agreements, and business plans to address any concerns over market dominance. Despite delays and technical challenges, the CCP maintained rigorous scrutiny until satisfied.

Sources reveal that the CCP faced external and corporate pressures to hasten approval, but Chairman Dr. Kabir Sidhu upheld strict transparency standards, refusing to compromise statutory requirements.

In February 2025, a stakeholder’s counsel claimed the CCP had become “functus officio,” a position the Commission firmly rejected, emphasizing adherence to statutory timelines and the public interest mandate for thorough investigation.

The duration and rigor of the PTCL-Telenor review align with global telecom merger precedents, such as the Vodafone/Three UK and Sprint/T-Mobile deals, which required 22 to 23 months of regulatory scrutiny. The CCP’s 18-month examination underscores the complexity and importance of mergers that reshape competitive dynamics in the telecom sector.