Business Recorder
The Competition Commission of Pakistan (CCP) has approved the acquisition of shareholding in Pakistan Corporate Restructuring Company Limited by United Ethanol Industries Limited following a Phase-I competition assessment conducted under the Competition Act, 2010. In a statement issued on Tuesday, the CCP said Pakistan Corporate Restructuring Company Limited (PCRCL) is a public limited company licensed by the Securities and Exchange Commission of Pakistan to operate as a restructuring company. The company primarily deals with the acquisition, management, restructuring and resolution of non-performing assets (NPAs), along with the revival, reorganization and liquidation of financially distressed businesses. United Ethanol Industries Limited, the acquiring company, is engaged in the manufacture and sale of ethanol and related industrial products. The company operates in the broader agribusiness and industrial sector, producing fuel-grade and industrial-grade ethanol through value-added agricultural processing. According to the CCP, the transaction involves the acquisition of ordinary shares of PCRCL from eight commercial banks, including 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 the assessment, the Commission reviewed the competitive impact of the transaction in the market for “resolution of non-performing assets and restructuring advisory/agency services” in Pakistan. The CCP observed that the transaction constitutes a conglomerate merger because both parties operate in separate and unrelated business segments without any horizontal or vertical overlap. The Commission concluded that the acquisition is unlikely to substantially lessen competition, create barriers to market entry or strengthen any dominant position in the relevant market. The transaction was subsequently authorised under Section 31 of the Competition Act, 2010, with the CCP stating that the deal would not adversely affect market structure or competitive dynamics in Pakistan. The regulator said it remains committed to facilitating investment, supporting business growth and enabling efficient market transactions through timely merger reviews while ensuring a competitive and transparent business environment.
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