The Competition Commission of Pakistan (CCP) has approved National Logistics Corporation (NLC)’s acquisition of a 60% stake in DP World Logistics FZE, a Dubai-based global trade and logistics company. The deal, facilitated by the Special Investment Facilitation Council (SIFC), aims to enhance Pakistan’s logistics and freight industry while ensuring fair competition in the market. The CCP’s assessment concluded that the merger would not create a dominant market position or restrict competition under the Competition Act, 2010.
DP World, a leading global port operator, manages supply chain and trade hubs in over 69 countries, including major ports, terminals, and logistics parks. The company’s entry into Pakistan’s logistics market is expected to streamline supply chain operations, improve efficiency, and introduce international best practices. Meanwhile, NLC, a state-owned entity founded in 1978, plays a pivotal role in Pakistan’s freight, infrastructure, and multimodal logistics services, covering road transport, warehousing, and freight forwarding.
The relevant market for the transaction was identified as ‘road freight logistics’, a key segment in Pakistan’s trade and transport sector. The CCP determined that the merger would not lead to monopolistic concerns, as both companies primarily operate in different segments. Rather than limiting competition, the transaction is expected to enhance logistics capabilities, improve market access, and attract further investment into the sector. The lack of significant coordinated effects also means that concerns regarding potential collusion are minimal.
The approval of this merger signals Pakistan’s growing attractiveness for foreign investment in logistics, particularly as global supply chain disruptions highlight the importance of efficient freight management. With DP World’s expertise and NLC’s domestic network, the joint venture is expected to significantly improve logistics infrastructure, reduce transportation costs, and increase Pakistan’s competitiveness in regional trade.
