KARACHI: The Competition Commission of Pakistan (CCP) has approved the acquisition of a shareholding in Pakistan General Insurance Company Ltd by Muhammad Shahzad Habib and his family members, following a Phase I review under the Competition Act, 2010.
The transaction was submitted to the regulator after completion, in breach of requirements mandating prior approval for notifiable deals. The CCP flagged the lapse, reiterating that pre-merger clearance is a statutory obligation.
The acquirers argued that the purchase would not harm competition. The commission assessed the deal’s structure, the profile of the buyers and conditions in the country’s general insurance sector before reaching its decision.
The regulator defined the relevant market as general insurance in Pakistan, noting that the target company has only recently resumed operations and holds a negligible market share. It added that the sector includes multiple firms of varying size, reflecting a competitive and regulated landscape.
The CCP concluded the transaction raises no horizontal or vertical competition concerns and does not create or strengthen a dominant market position. The deal was therefore approved.However, the commission instructed the buyers to provide a written undertaking to ensure future compliance with merger control rules and to avoid completing notifiable transactions without prior approval.The CCP said adherence to merger regulations remains essential to promote transparency, safeguard competition and protect consumer welfare in markets.
