The Competition Commission of Pakistan (CCP) has approved an internal restructuring within South Korea’s Lotte Group, clearing a transaction involving the company’s operations in Pakistan. The Commission concluded that the ownership change would not affect competition in the country’s food and beverage sector.
The approval followed a Phase-I competition assessment, which found that the transaction would neither change the market structure nor reduce competition in Pakistan.
What the Transaction Involves
The approved restructuring involves Japan’s Lotte Co., Ltd. acquiring shareholding in Singapore-based Lotte Confectionery (S.E.A.) Pte. Ltd. from Lotte Wellfood Co., Ltd.
The transaction required regulatory approval because the Singapore-based company holds ownership interests in Lotte Kolson and Lotte Akhtar Beverages, both of which operate in Pakistan.
Therefore, the acquisition fell under the provisions of the Competition Act, 2010, requiring prior approval from the Competition Commission.
CCP Finds No Competition Concerns
After reviewing the transaction, the Commission determined that the deal represents only an internal ownership change within the Lotte Group.
According to the assessment, the acquiring company does not operate any confectionery or food business in Pakistan. As a result, the transaction will not increase market concentration or create a dominant position in any relevant market.
Furthermore, the Commission concluded that the restructuring would have no adverse impact on competition.
Markets Reviewed During Assessment
As part of its review, the CCP examined several product markets within Pakistan.
These included pasta, chewing gum, savoury snacks, sweet biscuits, cakes, and beverages.
The Commission found that the market shares of Lotte Kolson and Lotte Akhtar Beverages would remain unchanged after the restructuring.
Consequently, the transaction is not expected to affect competition or alter the existing market dynamics.
Approval Granted Under Competition Law
Following its assessment, the Commission approved the acquisition under Section 31(1)(d)(i) of the Competition Act, 2010.
The CCP concluded that the transaction would not result in a substantial lessening of competition in Pakistan.
Supporting Business Growth
The decision reflects the Commission’s approach to facilitating investment and corporate restructuring while maintaining fair competition.
Moreover, timely approval of transactions that do not raise competition concerns provides greater regulatory certainty for businesses.
At the same time, the CCP continues to monitor mergers and acquisitions to ensure that competitive market conditions remain protected across Pakistan’s economy.
