The Competition Commission of Pakistan (CCP) has approved Treet Corporation Limited’s proposal to increase its shareholding in Loads Limited.
The approval followed a Phase-I review conducted under the Competition Act, 2010. Treet Corporation sought permission to subscribe to additional ordinary shares of Loads Limited through a rights issue.
After reviewing the transaction, the Commission concluded that it would not harm competition in the relevant markets.
Transaction involves additional shares through a rights issue
Treet Corporation submitted a pre-merger application under Section 11 of the Competition Act, 2010. The company requested approval to acquire additional ordinary shares of Loads Limited through a rights issue.
The proposed transaction represents an increase in Treet’s equity investment in an already associated undertaking. Therefore, the Commission examined whether the move could affect market competition.
Companies operate in different manufacturing sectors
Treet Corporation Limited is a publicly listed company that manufactures and sells razors and razor blades. In addition, its subsidiaries operate in several industries.
These include batteries, corrugated boxes, soaps, medicinal concentrates, electric bikes, rickshaws, and workforce solutions. Loads Limited is also a publicly listed company.
The company manufactures radiators, exhaust systems, and metal sheet components for Pakistan’s automotive industry.
CCP reviews the relevant markets
During its assessment, the Commission identified three relevant product markets. These included exhaust systems, radiators, and metal sheet components. The relevant geographic market was identified as Pakistan.
The Commission also observed that Treet Corporation and Loads Limited are already associated undertakings. Furthermore, both companies share common management representation.
Competition assessment finds no adverse impact
According to the Commission, the proposed investment will not change the market shares of either company. As a result, the transaction is not expected to reduce competition in the identified markets.
The assessment also found that the investment would not create barriers for new market entrants. Similarly, it would not significantly increase the market power of the companies involved.
Therefore, the Commission concluded that the transaction is unlikely to result in any adverse effects on competition.
Approval granted under the Competition Act
Following its review, the CCP determined that the transaction would not create or strengthen a dominant market position. Consequently, the Commission authorised the investment under Section 31(1)(d)(i) of the Competition Act, 2010.
The approval reflects the Commission’s continued approach of facilitating legitimate corporate restructuring and investment.
At the same time, it aims to ensure that competition, market efficiency, and consumer welfare remain protected.
