The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of 100 percent shareholding of Nishat Hospitality (Private) Limited by Nishat Hotels and Properties Limited, as outlined in the Share Purchase Agreement. Nishat Hotels and Properties Limited, a public unlisted company, is a prominent player in Lahore’s real estate and hospitality sectors. The company operates a shopping mall, hotel, and banquet halls and has developed Nishat Residences, a project comprising residential apartments. Nishat Hospitality (Private) Limited, a private limited company, is engaged in providing hospitality services in Lahore. The relevant market for this transaction has been identified as ‘Hospitality Services’, with the geographic scope with in Lahore. Currently, Nishat Hotels and Properties holds a 10 percent market share, while Nishat Hospitality commands 4 percent. Post-acquisition, the combined entity is expected to hold a 14 percent share in the hospitality market of Lahore. Following an in-depth analysis of the merger, the CCP determined that the transaction would not result in market dominance as defined under Section 2(1)(e) read with Section 3 of the Competition Act, 2010. Therefore, the CCP has authorized the transaction under Section 31(1)(d)(i) of the Act, as it does not pose any significant competition concerns. This merger is expected to enhance operational efficiencies and boost the hospitality industry in Lahore by combining the strengths and expertise of two established entities. It is anticipated to contribute positively to Pakistan’s economy by fostering innovation, improving service quality and promoting investment in the country’s growing hospitality sector.
The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of 100 percent shareholding of Nishat Hospitality (Private) Limited by Nishat Hotels and Properties Limited, as outlined in the Share Purchase Agreement.
Nishat Hotels and Properties Limited, a public unlisted company, is a prominent player in Lahore’s real estate and hospitality sectors. The company operates a shopping mall, hotel, and banquet halls and has developed Nishat Residences, a project comprising residential apartments. Nishat Hospitality (Private) Limited, a private limited company, is engaged in providing hospitality services in Lahore.
The relevant market for this transaction has been identified as ‘Hospitality Services’, with the geographic scope with in Lahore. Currently, Nishat Hotels and Properties holds a 10 percent market share, while Nishat Hospitality commands 4 percent. Post-acquisition, the combined entity is expected to hold a 14 percent share in the hospitality market of Lahore.
Following an in-depth analysis of the merger, the CCP determined that the transaction would not result in market dominance as defined under Section 2(1)(e) read with Section 3 of the Competition Act, 2010. Therefore, the CCP has authorized the transaction under Section 31(1)(d)(i) of the Act, as it does not pose any significant competition concerns.
This merger is expected to enhance operational efficiencies and boost the hospitality industry in Lahore by combining the strengths and expertise of two established entities. It is anticipated to contribute positively to Pakistan’s economy by fostering innovation, improving service quality and promoting investment in the country’s growing hospitality sector.
© CCP 2024, Competition Commission of Pakistan ©All rights reserved
