The Competition Commission of Pakistan (CCP) has approved the merger of M/s. Global Haly Development Limited with and into M/s. Bank Makramah Limited, under a Scheme of Arrangement.
The proposed transaction was filed and reviewed under Section 11 of the Competition Act, 2010, read with the Competition (Merger Control) Regulations, 2016.
The merger involves the amalgamation of Global Haly Development Limited, a public limited company primarily engaged in real estate and infrastructure development, into Bank Makramah Limited, a publicly listed banking institution, said a release issued here on Friday.
As per the agreement, Bank Makramah Limited will issue ordinary shares to the shareholders of Global Haly Development Limited. Upon completion, Bank Makramah will remain the surviving entity, while Global Haly Development will stand dissolved.
The Commission conducted a Phase-I review of the transaction and defined the relevant market as “Commercial Banking” within the geographic boundaries of Pakistan. Based on the data provided and the information from the State Bank of Pakistan, it was noted that Bank Makramah holds a modest market share in commercial banking sector and since Global Haly Development Limited does not operate in the banking sector, the transaction has no horizontal overlaps.
The Commission found that the proposed merger is not likely to substantially lessen competition, nor does it create or strengthen a dominant position in the relevant market. The transaction primarily aims to help Bank Makramah meet minimum capital requirements and enhance its operational capabilities.
Accordingly, the CCP has authorized the proposed transaction under Section 31(1)(d)(i) of the Competition Act, 2010.