Chairman Competition Commission of Pakistan Dr Kabir Ahmed Sidhu has approved Nishat Hotels and Properties Limited’s acquisition of Hotel Margala in Islamabad, paving the way for Nishat’s entry into the capital’s hospitality sector.
Nishat Hotels, a subsidiary of the Nishat Group, primarily operates luxury accommodations in Lahore, including the high-end Nishat Hotels in Johar Town and Gulberg. As one of Pakistan’s largest conglomerates, with diversified interests in textiles, banking, cement, power, and hospitality Nishat Group is owned by billionaire Mian Muhammad Mansha, who also controls MCB Bank and various other enterprises.
The decision has been taken after first phase review in the matter of acquisition of certain assets of M/S Hotel Margala (private) Limited by M/s Nishat Hotels & Properties Limited. Issuing a press release on Friday the Commission declared it has approved the acquisition of assets of M/s Hotel Margala Private Limited by M/s Nishat Hotels and Properties Limited.
It added under the Sale and Purchase Agreement, Nishat Hotels and Properties Limited will acquire the assets of Hotel Margala, including leasehold rights to its plot on Srinagar Highway, the entire built-up structure of the motel, fittings and fixtures, utility connections, associated deposits, and all movable property on the premises.
As part of its competition assessment, the CCP examined potential concerns related to market dominance and the impact on competition following the merger. The relevant product market has been defined as hospitality services, with the relevant geographic market determined to be Islamabad.
Hotel Margala, a 92-room facility, currently holds an estimated 5.46% market share in Islamabad’s hospitality sector. The transaction is horizontal in nature, as both companies operate within the hospitality sector; however, their geographic operations are distinct.
Nishat Hotels and Properties Limited primarily operates in Lahore, while Hotel Margala Private Limited is exclusively based in Islamabad. Given the absence of a direct geographic market overlap, the transaction is unlikely to impact competitive dynamics or raise market concentration concerns. Furthermore, barriers to entry in the hospitality sector remain moderate, mitigating any potential anticompetitive effects.
