The Case:
Mobilink is the largest player in the Pakistani wireless market, while Warid is at No. 5, according to the VimpelCom(world’s largest telecommunications providers). Mobilink along with its partners announced merger of Warid with Mobilink, which is due to be completed by the second quarter of 2016; subject to regulatory approvals by the Competition Commission (CCP) and the Securities and Exchange Commission of Pakistan (SECP). As part of the transaction, Mobilink will first acquire 100 percent of Warid’s shares and Warid telecom, acquiring approximately 15 percent of the shares of Mobilink. The merged entity will serve over 45 million mobile customers. CEO Munir Farooqui at Warid termed the deal a win-win situation for both the companies.
Being a student of Economics, analyze the situation of Warid and Mobilink telecom merger and identify that which market structure is applied in this case? What will be the benefit of this merger to both companies according to suggested market structure?

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