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Jordan- Approving the shares' swap between PALTEL and ZAIN

2009-10-06

The Competition Directorate in the Ministry of Industry and Commerce agreed in a final version on deal of the exchange of shares between Zain Jordan and PALTEL. According to a study conducted by the Directorate on the deal that the issue has no economic concentration, as the two companies operate in different States, one in Palestine and the other in Jordan. An informed source " who asked not to be mentioned",  said that the telecommunication committee; which was waiting for the decision of the Competition Directorate had already finished the study of stock exchange deal which took place between the two companies, noting that the committee had previously agreed on the deal and notified  "ZAIN" of this resolution, Also Competition Directorate had been informed with the committee status, in this regard it should be noted that two other operators had promoted to the Ministry of Industry and Commerce represented by the Competition Directorate their  point of view that this deal represents an economic concentration. Economic concentration means according to Article 9 of the Competition Act No. 33 of 2004 which consider all the conduct resulting in the transfer of total or partial ownership or use rights of property, rights or shares or shares or obligations of the institution to another institution would be an institution or group of institutions of control, directly or indirectly, of an institution or a group of other institutions have required the same article for the completion of economic concentration, which could affect the level of competition in the market such as achieving or strengthening a dominant position to obtain the written approval of the Minister if they exceed the total share of the institution or institutions involved in the process of economic concentration 40% of the total transactions in the market.