ISLAMABAD : The Competition Commission of Pakistan (CCP) has approved the acquisition of shareholding in Pakistan Corporate Restructuring Company Limited (PCRCL) by United Ethanol Industries Limited following a Phase-I competition assessment conducted under the Competition Act, 2010.
Pakistan Corporate Restructuring Company Limited is a public limited company licensed by the Securities and Exchange Commission of Pakistan (SECP) to operate as a restructuring company. PCRCL primarily undertakes the acquisition, management, restructuring and resolution of Non-Performing Assets (NPAs), as well as the restructuring, reorganization, revival and liquidation of distressed commercial or financially troubled businesses.
The acquirer United Ethanol Industries Limited is a public limited company engaged in the manufacture and sale of ethanol and related industrial products. The company operates within the broader agribusiness and industrial sector and is involved in the production of fuel-grade and industrial-grade ethanol through value-added processing of agricultural raw materials.
The transaction involves the acquisition of ordinary shares of PCRCL from eight scheduled commercial banks, namely United Bank Limited, MCB Bank Limited, Allied Bank Limited, Meezan Bank Limited, Habib Metropolitan Bank Limited, Habib Bank Limited, Bank AL Habib Limited and Bank Alfalah Limited. During its assessment, the Commission examined the competitive effects of the transaction in the relevant market identified as, “resolution of Non-Performing Assets (NPAs) and restructuring advisory/agency services” in Pakistan.
The Commission observed that the transaction constitutes a conglomerate merger, as the merger parties operate in distinct and unrelated business segments with no horizontal or vertical overlap. The assessment concluded that the transaction is unlikely to substantially lessen competition, create entry barriers, or strengthen a dominant position in the relevant market.
Accordingly, the CCP authorized the transaction under Section 31 of the Competition Act, 2010, concluding that it does not adversely affect market structure or competitive dynamics in Pakistan. The CCP remains committed to facilitating investment, promoting business growth, and enabling efficient market transactions through timely merger reviews, while ensuring a competitive and transparent business environment in Pakistan.
