The Competition Commission of Pakistan (CCP) has approved two interconnected merger transactions that are part of a broader global restructuring involving Toyota Motor Corporation, Daimler Truck AG, Hino Motors Limited, and Mitsubishi Fuso Truck and Bus Corporation (MFTBC).
Together, they form a single integrated business restructuring aimed at consolidating and jointly managing the commercial vehicle operations of Hino and MFTBC through a newly established holding structure, said a release issued here on Wednesday.
Under the restructuring, Toyota Motor Corporation, through its subsidiary Hino Motors Limited, has acquired full ownership of Mitsubishi Fuso Truck and Bus Corporation.
At the same time, Daimler Truck AG has acquired an interest in a newly incorporated holding company, AIB Limited, through which Hino and MFTBC will be jointly owned and managed.
The Commission assessment of both transactions, focusing on their potential impact on competition in Pakistan, particularly in the manufacturing and distribution of buses and trucks.
While the assessment identified some overlap between the commercial vehicle operations of Hino and MFTBC, the Commission found that the restructuring does not create or strengthen a dominant position in the relevant markets. The commercial vehicle sector in Pakistan remains competitive, with several established players continuing to operate in the market. Regarding Daimler Truck AG’s acquisition of an interest in the holding company, the Commission noted that Daimler Truck AG no longer has any independent commercial vehicle operations in Pakistan. Its only relevant interest, MFTBC, had already been acquired by Toyota under the first part of the restructuring. As a result, this transaction was found to be competitively neutral and does not affect market competition in Pakistan.
Based on its assessment, the Competition Commission of Pakistan concluded that the two interconnected transactions, when considered together as part of a single broader restructuring, do not raise any competition concerns. Both transactions were reviewed and approved under the Competition Act, 2010 and the Competition Merger Control Regulations, 2016.