KARACHI: The Competition Commission of Pakistan (CCP) has approved the Central Depository Company of Pakistan Limited’s (CDC) investment in Naymat Collateral Management Company Limited (NCMCL) following a Phase-I merger review under the Competition Act, 2010.
CDC had filed a pre-merger application under Section 11 of the Act seeking approval to subscribe to additional ordinary shares in NCMCL. Following its assessment, the commission authorised the transaction, allowing CDC to increase its stake in the company.
NCMCL is currently the only collateral management company registered with the Securities and Exchange Commission of Pakistan for accreditation and oversight of warehouses operating under the Electronic Warehouse Receipt framework.
The commission defined the relevant market as “collateral management and warehousing oversight services” in Pakistan. It said the transaction was unlikely to materially affect competition as the two entities operate in distinct and unrelated segments.
It added that the deal does not involve horizontal or vertical integration, reducing the risk of anti-competitive outcomes such as market foreclosure or collusion. The commission further concluded that the transaction would not create entry barriers or substantially lessen competition. The CCP approved the transaction under Section 31 of the Competition Act.
