The Competition Commission of Pakistan (CCP) has approved United Ethanol Industries Limited’s acquisition of a stake in Pakistan Corporate Restructuring Company Limited (PCRCL) after completing a Phase I review under the Competition Act, 2010.
PCRCL is a SECP-licensed restructuring firm that focuses on acquiring, managing, and resolving non-performing assets, as well as helping revive or liquidate financially distressed companies.
United Ethanol Industries Limited is a publicly listed company engaged in producing and selling fuel-grade and industrial ethanol, operating within Pakistan’s agribusiness and industrial sector.
The transaction involves the purchase of PCRCL ordinary shares from eight commercial banks: United Bank Limited, MCB Bank, Allied Bank, Meezan Bank, Habib Metropolitan Bank, Habib Bank, Bank AL Habib, and Bank Alfalah.
During its assessment, the CCP reviewed the deal’s potential impact on the market for non-performing asset resolution and restructuring advisory services. It concluded that the acquisition is a conglomerate merger, as both companies operate in entirely separate sectors with no direct overlap.
The regulator further noted that the transaction is unlikely to harm competition, create barriers to entry, or strengthen any dominant position in the market. It therefore approved the deal under Section 31 of the Competition Act, 2010.
The CCP reiterated its commitment to promoting investment, supporting business activity, and ensuring fair competition through timely merger reviews and regulatory oversight.
