CCP Approves Merger in Pakistan’s Real Estate Sector

The Competition Commission of Pakistan (CCP) has approved a merger in real estate sector. This approved transaction involves M/s Enaara Properties Rawalpindi Ltd acquiring 100 percent shareholding of M/s Sprint Services Rawalpindi Ltd under a Share Purchase Agreement. Sprint Services Rawalpindi is a public unlisted company with the business footprint in developing commercial real estate. It owns a shopping mall in a prime location in Rawalpindi. Its major shareholders include M/s FYC (Pvt) Ltd, a private limited company, and two individuals. Whereas, Enaara Properties is a holding company specifically established to execute this acquisition and to conduct business in real estate sector. The CCP’s Phase I competition assessment identified ‘real estate’ as the relevant product market. CCP concluded that the merger would not alter the current market dynamics or lead to a dominant position, ensuring that competition within the sector remains unaffected. Under the Competition Act, 2010, the CCP is responsible for assessing mergers to prevent anti-competitive practices and ensure fair competition. The CCP’s approval signifies that the merger does not pose a threat to competitive market conditions. By approving this merger, the CCP strives to ensure compliance with competition law while potentially fostering growth and stability in Pakistan’s real estate sector.