ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved IGI Investments (Private) Limited’s acquisition of a shareholding in Akzo Nobel Pakistan Limited from ICI Omicron B.V. after completing a Phase-I competition assessment.
IGI Investments is a wholly owned subsidiary of IGI Holdings Limited and operates as the strategic investment arm of the IGI Group, managing investments including equity and debt securities.
Akzo Nobel Pakistan is engaged in the manufacture and sale of coatings in Pakistan. For its review, the CCP identified decorative coatings, including paint, and industrial coatings as the relevant product markets, with Pakistan treated as the relevant geographic market.
The seller, ICI Omicron B.V., is a Netherlands-incorporated private limited company and a subsidiary of Akzo Nobel N.V. It operates as a holding investment vehicle for interests in decorative and industrial coatings.
According to the CCP, the proposed transaction does not create any horizontal overlap or vertical relationship in the relevant Pakistani markets.
The regulator said the deal would therefore not result in an increase in market share or market concentration.
The Commission also found that the relevant market remains fragmented and that the transaction is unlikely to create barriers to entry, significantly increase the market power of the parties, restrict existing or potential competitors, or lead to a substantial lessening of competition.
On that basis, the CCP concluded that the acquisition would not create or strengthen a dominant position in the relevant market.
The transaction was consequently authorised under Section 31 of the Competition Act, 2010.
The Commission also noted that some ancillary restrictions contained in the agreement may require an exemption under Section 5 of the Competition Act, read with the Competition Commission (Exemption) Regulations, 2020.
The CCP said its merger review framework is aimed at facilitating investment and business activity while protecting competitive markets and consumer welfare in Pakistan.
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