Pakistan Telecommunication Company Limited (PTCL), managed by e&, agreed to acquire Telenor Pakistan in 2023 – the deal is expected to complete in early 2026
The Pakistan Telecommunication Authority (PTA) has agreed to the takeover of Telenor’s mobile business and assets by rival Pakistan Telecommunication Company Limited (PTCL) two years after the acquisition was mooted.
In December 2023, Telenor announced a cash and debt-free deal with PTCL. The deal was valued by Telenor Pakistan at NOK 5.3 billion (about €445 million), which included repayment of NOK3.5 billion in loans and interest-bearing liabilities, including leases. PTCL is 62% state owned. e& manages the operator and holds a stake of just over 26%. The rest of the shares are publicly traded.
The PTA said it had evaluated the likely impact on market competition and consumers, and consulted government bodies to ensure that the transaction meets statutory requirements.
“With this NOC [No Objection Certificate], PTCL may proceed with the acquisition, subject to completion of all legal and commercial formalities,” the PTA said. “Both companies must ensure continuity and quality of services and uphold all licence obligations throughout the transition.”
A final hurdle remains: the State Bank of Pakistan must oversee the final transaction that is expected to complete early in 2026.
The PTA approved the transaction two months ago, but with a daunting array of remedies, such as the Competition Commission of Pakistan (CCP) insists that PTCL must maintain separate management and governance between itself and its mobile unit which is to be merged with the Telenor business once the deal is done.
PCTL must also avoid any cross-subsidies, price discrimination or any discrimination regarding access to capacity and infrastructure for all operators. A monitoring system is to be put in place to ensure compliance and report on a quarterly basis for five years.
On the upside, no structural remedies were inflicted, meaning neither party was obliged to offload part of their businesses or assets.
Telenor Pakistan is the third largest mobile operator in the country with 42.4 million mobile users, close behind the second largest, China Mobile’s Zong. PTCL is fourth with 27.2 million. After the merger the combined customer base be the second largest with a market share of about 35.5% and should be in a better position to challenge the market leader, Jazz.
