ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of a 90.61 Percent shareholding in Searle Pakistan Limited (SPL) by Ijara Capital Partners Limited (ICPL) and Noventa Pharma (Private) Limited (NPL).
The CCP conducted a comprehensive competition assessment, identifying the relevant product market as ‘pharmaceutical products’, further segmented into therapeutic classes (e.g. cardiovascular drugs, antibiotics) and branded versus generic pharmaceuticals. The assessment determined that SPL’s relatively low market share indicates the transaction would not create a dominant market position for the acquirers. As the transaction is conglomerate in nature, no significant vertical integration concerns were identified.
The pharmaceutical sector in Pakistan operates within a regulated framework, characterized by moderate barriers to entry, including stringent regulatory approvals and substantial capital requirements. CCP’s evaluation concluded that the transaction is unlikely to heighten these barriers or adversely impact consumers.
SPL, a public unlisted company incorporated under the laws of Pakistan, specializes in the import, manufacture and sale of pharmaceutical products. ICPL, also a public unlisted company, is engaged in private equity and venture capital fund management services. NPL is a private limited company established as a Special Purpose Vehicle.
The approval underscores CCP’s commitment to fostering competitive market dynamics while ensuring transactions align with the Competition Act, 2010, and the Competition (Merger Control) Regulations 2016.
