The Competition Commission of Pakistan (CCP) has approved IGI Investments’ acquisition of shareholding in Akzo Nobel Pakistan Limited. The approval followed a Phase-I competition assessment.
IGI Investments will acquire the stake from ICI Omicron B.V. The company operates as a wholly owned subsidiary of IGI Holdings Limited.
IGI Investments serves as the strategic investment arm of the IGI Group. It manages major investments, including equity and debt securities.
CCP Reviews Market Competition Impact
Akzo Nobel Pakistan Limited manufactures and sells coatings across Pakistan. During its review, the CCP identified decorative and industrial coatings as the relevant product markets.
Meanwhile, ICI Omicron B.V. operates as a subsidiary of Akzo Nobel N.V. The Netherlands-based company serves as an investment holding vehicle.
The CCP found no horizontal overlap between the parties. It also identified no vertical relationship in the relevant markets.
Transaction Found Unlikely to Harm Competition
According to the assessment, the deal will not increase market share or market concentration. Therefore, the transaction poses no significant competition concerns.
Furthermore, the Commission noted that the market remains fragmented. It concluded that the acquisition is unlikely to create barriers for new entrants.
The CCP also stated that the transaction would not strengthen a dominant position. As a result, it authorised the deal under Section 31 of the Competition Act, 2010.
However, the Commission noted that certain ancillary restrictions may require exemption. These exemptions would fall under the Competition Act and related regulations.
The CCP reaffirmed its commitment to transparent merger reviews. It added that the framework supports investment while protecting competition and consumer welfare.
