The Competition Commission of Pakistan (CCP) has approved the merger of M/s Global Haly Development Limited 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, the CCP said in a statement.
Under the agreement, Bank Makramah will issue ordinary shares to the shareholders of Global Haly Development. Upon completion, Bank Makramah will remain the surviving entity, while Global Haly Development will be dissolved.
The Commission conducted a Phase-I review of the transaction and defined the relevant market as “Commercial Banking” within Pakistan. Based on data provided and information from the State Bank of Pakistan, it was noted that Bank Makramah holds a modest market share in the commercial banking sector, and since Global Haly Development does not operate in banking, the transaction has no horizontal overlaps.
The CCP concluded that the proposed merger is not likely to substantially lessen competition, nor does it create or strengthen a dominant position in the market. The transaction is primarily intended to help Bank Makramah meet minimum capital requirements and enhance operational capabilities.
Accordingly, the Commission authorised the proposed transaction under Section 31(1)(d)(i) of the Competition Act, 2010.
