Mobilink & Warid Telecom Merger Approved by CCP

(March 21, 2016): Competition Commission of Pakistan (CCP) has issued the decision on merger of Mobilink & Warid Telecom and allowed them to continue this deal.

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The CCP bench, heard the case was consists of Vadiyya Khalil the Chairperson, Dr. Shahzad Ansar, Member Office of Fair Trade & Advocacy, and Ikram Ul Haque Qureshi, Member Cartels & Trade Abuse and Legal.

As per details, Commission’s bench has given approval for Mobilink & Warid Telecom merger without objection on the matter. Both the companies will proceed according to directions of Commission. In orders, it is allowed that both of merging companies will continue their operation according to market based trends and their interconnect conditions.

As CCP approved, now Securities and Exchange Commission of Pakistan (SECP) and Pakistan Telecommunication Authority (PTA) are expected to approve the merger agreement, which will permit both the companies to step forward for merging their operations and assets.

 It is pertinent to mention here that, in November 2015, Mobilink & Warid Telecom were announced merger and agreed to unify their operations Within 6 months after obtaining formal approvals from concerned authorities.

As per statistics recently released by Pakistan Telecommunication Authority (PTA), Mobilink has 37.48 million mobile user while Warid Telecom has 10.9 million customers. For 3G subscription, Mobilink has 7.93 million users while Warid Telecom did not acquired 3G License. As well as 4G/LTE subscription is concerned, Mobilink did not have 4G License up till now while Warid Telecom has 257,426 users up to February 2016. After merger Moblink will acquire 100% Shares of Warid Telecom Telecom, While Abu Dhabi Group UAE (The owner of Warid Telecom) will acquire 15% Shares in Mobilink as per agreement.

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