CCP approves acquisitions in packaging and renewable energy sectors

ISLAMABAD:  The Competition Commission of Pakistan (CCP) has approved two acquisitions, reinforcing its commitment to promoting competition across sectors. The transactions involve M/s. International Paper Company acquiring M/s. DS Smith Plc, and M/s. Pakistan Pencils (Private) Limited acquiring M/s. YDE SA (SMC-Private) Limited.

As per details shared by CCP, the M/s. International Paper Company, a US based global leader in renewable fiber-based packaging and pulp products, is acquiring 100% shareholding of DS Smith Plc, a public limited company in England and Wales and the parent of the DS Smith Group. DS Smith operates primarily in corrugated packaging across the European Economic Area. The indirect subsidiary of the group namely M/s. TMS Pakistan (Private) Limited, supplies point-of-sale display stands to a single customer in Pakistan, therefore it requires a CCP approval.

The second transaction involves M/s. Pakistan Pencils (Private) Limited acquiring 100% shareholding of M/s. YDE SA (SMC-Private) Limited through a Share Purchase Arrangement. Pakistan Pencils is a leading Pakistani manufacturer and distributor of stationery products, while YDE SA designs and installs renewable energy power plants and sells electricity in Pakistan. 

The CCP has identified the relevant market for this transaction as “Distributed Power Generation – Bulk Power Consumer,” with YDE SA holding a nominal market share in the industry, according to NEPRA’s data.

The CCP’s Phase I competition assessment determined that neither acquisition would lead to market dominance. International Paper Company’s subsidiary and YDE SA hold negligible market shares in Pakistan’s industry. As a result, both transactions are unlikely to negatively affect competition in their respective markets.