The Competition Commission of Pakistan has approved the proposed investment by Central Depository Company of Pakistan Limited in Naymat Collateral Management Company Limited after completing a Phase I review under the Competition Act 2010.
According to the CCP, CDC submitted a pre-merger application seeking permission to acquire additional ordinary shares in NCMCL, which would increase its ownership stake in the company.
Established in 1993, CDC is one of Pakistan’s leading capital market institutions, providing electronic custody, settlement facilitation, and depository services.
NCMCL, founded in 2020, operates as a collateral management company offering warehouse monitoring, verification, and reporting services for commodities used as collateral.
The CCP noted that NCMCL is currently the only company registered with the Securities and Exchange Commission of Pakistan for warehouse accreditation and oversight under Pakistan’s Electronic Warehouse Receipt system.
During its review, the Commission identified the relevant market as collateral management and warehouse oversight services within Pakistan. It concluded that the transaction would not significantly impact market competition since both companies operate in separate and unrelated business sectors.
The regulator also stated that the investment does not involve horizontal or vertical integration, reducing the risk of anti-competitive practices such as market dominance or collusion.
The CCP formally approved the transaction under Section 31 of the Competition Act, stating that the decision aligns with its objective of supporting investment, promoting efficient market operations, and protecting consumer welfare.
