CCP Approves Two Acquisitions in Packaging, Renewable Energy Sectors   

The Competition Commission of Pakistan (CCP) has approved two acquisitions, reinforcing its commitment to promoting competition across sectors.    The transactions involve International Paper Company acquiring DS Smith Plc, and Pakistan Pencils (Private) Limited acquiring YDE SA (SMC-Private) Limited.   International Paper Company, a US-based global leader in renewable fiber-based packaging and pulp products, is acquiring 100 percent shareholding of DS Smith Plc, a public limited company in England and Wales and the parent of the DS Smith Group. DS Smith operates primarily in corrugated packaging across the European Economic Area. In Pakistan, its indirect subsidiary, TMS Pakistan (Private) Limited, supplies point-of-sale display stands to a single customer. The relevant market for this transaction has been identified as “Point of Sale Display Stands.”   The second transaction involves Pakistan Pencils (Private) Limited acquiring 100% shareholding of YDE SA (SMC-Private) Limited through a Share Purchase Arrangement. Pakistan Pencils is a leading Pakistani manufacturer and distributor of stationery products, while YDE SA designs and installs renewable energy power plants and sells electricity in Pakistan. The CCP has identified the relevant market for this transaction as “Distributed Power Generation – Bulk Power Consumer,” with YDE SA holding a 2.50% market share, according to NEPRA data.   The CCP’s Phase I competition assessment determined that neither acquisition would lead to market dominance. International Paper Company’s subsidiary holds less than 1 percent market share in Pakistan, while YDE SA has a 2.50 percent share in its segment, according to NEPRA data. As a result, both transactions are unlikely to negatively affect competition in their respective markets.