The Competition Commission of Pakistan (CCP) has approved IGI Investments (Private) Limited’s acquisition of a stake in Akzo Nobel Pakistan Limited from ICI Omicron B.V. after completing its Phase-I competition review.
IGI Investments, a wholly owned subsidiary of IGI Holdings Limited, is the investment arm of the IGI Group and manages investments in equity and debt securities.
Akzo Nobel Pakistan manufactures and sells coatings in Pakistan, including decorative paints and industrial coatings.
For its competition assessment, the CCP treated decorative coatings and industrial coatings as separate relevant product markets, with Pakistan as the geographic market.
The Commission found that the proposed acquisition would not create any horizontal overlap or vertical relationship between the parties in these markets. As a result, the transaction is not expected to increase market share or market concentration.
The CCP said the relevant markets remain fragmented and concluded that the deal is unlikely to create significant barriers for new entrants, strengthen the market power of the parties, restrict competitors or substantially reduce competition.
The Commission therefore determined that the acquisition would not create or strengthen a dominant position and approved the transaction under Section 31 of the Competition Act, 2010.
The CCP noted, however, that certain ancillary restrictions included in the transaction agreement may require a separate exemption under Section 5 of the Competition Act and the Competition Commission (Exemption) Regulations, 2020.
The Commission said its merger review framework aims to facilitate investment and business activity while maintaining competition and protecting consumer interests.
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