ISLAMABAD ( ABRAR MUSTAFA )
Competition Commission of Pakistan has notified Mobilink that its announced merger with Warid is not according to the rules and regulation of the Competition Act of Pakistan. The letter that is attached below clearly states that it is compulsory requirement for any entity that is undergoing such an activity to notify the commission.
The letter points to Section 11(2) of the Competition Act of 2010 which deals directly with matters of mergers and acquisition. It was pointed to the CEO of Mobilink that under this section it is imperative that the company notifies the commission to get the clearance.
Few days earlier announcement, It’s official – Pakistan’s telecom industry is about to witness a massive consolidation as the parent companies of Mobilink and Warid Telecom announced on Thursday that they had reached a merger agreement.
A joint press release issued by both companies says Mobilink will first acquire 100 per cent of Warid’s shares in consideration for the Dhabi Group (Warid’s parent company) shareholders acquiring approximately 15pc of Mobilink shares.
The merged entity will serve over 45 million mobile customers and will become the leading high-speed mobile network in Pakistan, claims the release.
The merger will create synergies worth $500m.
“The transaction is expected to close within six months from today, subject to obtaining approvals from the relevant authorities in Pakistan and the satisfaction of customary closing conditions,” reads the press release.