The Competition Commission of Pakistan (CCP), in a recent statement, has granted approval for the acquisition of Standform Pakistan Private Limited by Crest Garments International Private Limited.
According to the statement, the deal is part of an internal corporate restructuring, as both companies are owned and managed by the same group of shareholders.
Standform Pakistan operates in the pharmaceutical and nutraceutical supplements sectors, with products in 19 different therapeutic categories, including treatments for joint pain, analgesics, vitamins and mineral supplements, gastrointestinal diseases, antibiotics, and psychotropic drugs.
Crest Garments, on the other hand, is primarily involved in the garment manufacturing business and has no activities in the pharmaceutical or nutraceutical supplements sectors.
After a detailed review, the CCP determined that the proposed acquisition will not result in any horizontal, vertical, or conglomerate overlap in the market, nor will it increase market concentration.
The Commission noted that the pharmaceutical and nutraceutical supplements market in Pakistan still has numerous active companies, the level of competition is moderate, and new companies continue to enter the market.
Therefore, the deal will neither reduce competition nor result in the dominance of a single company.
It was further stated that the transaction is essentially an intra-group structural change that will not cause any fundamental difference in control or management. The CCP indicated that the current market conditions, competitive pressure, and opportunities for new companies will not be affected by this transaction.
Separately, a few days ago, the Commission also approved the acquisition of Novartis Pharma (Pakistan) Limited by International Investment Two Limited. In that case, although a minor overlap was observed in a few therapeutic categories such as diabetes, joint pain, epilepsy, and cardiovascular diseases, the Commission concluded that the combined market shares of the two companies were not substantial enough to have any adverse effect on competition.
