ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval to two mergers in home health care services and non-life insurance sectors. The approvals were granted following the successful completion of Phase-1 competition assessment, conducted in accordance with Section 11 of the Competition Act, 2010.
CCP approved the merger application filed by Shifa International Hospitals Limited to acquire SIHT Private Limited from Shifa Foundation. It was found that there was no overlap in the activities of the merger parties in the relevant market, therefore, post-transaction, market conditions will remain unchanged. Furthermore, the proposed transaction, having raised no competition concerns, secured the CCP’s approval.
CCP also approved the merger of TPL Insurance Limited (TPLI) with New Hampshire Insurance Company – Pakistan Branch (NHICP) after completing all formalities. NHICP is a Pakistan-based branch of New Hampshire Insurance Company incorporated under the laws of the United States of America. The branch was providing general insurance services, however, its operations ceased in 2016. Likewise, the proposed transaction raised no competition concerns, earning swift approval from CCP.
It is important to note that the Competition Act stipulates mandatory procedure for review and prior clearance of mergers and acquisitions meeting the thresholds specified by the CCP. The purpose of merger review is to safeguard competition, while simultaneously fostering an environment conducive to attracting foreign direct investment.
CCP is entrusted with the mandate of providing free competition in all spheres of commercial and economic activities, to enhance economic efficiency and to protect consumers from anti-competitive behaviour.