CCP approves Dawood group merger, sees no competition risk

The Competition Commission of Pakistan on Wednesday cleared the amalgamation of Cyan Limited and DH Partners Limited into Dawood Lawrencepur Limited, stating the transaction does not raise competition concerns.

The approval, granted under Section 31(1)(d)(i) of the Competition Act, 2010, follows a Phase-I assessment in which the regulator found that the merger would neither create nor strengthen a dominant market position.

The Commission described the transaction as an internal restructuring within the Dawood Group, noting that all three firms operate under common control and primarily function as investment vehicles managing diversified portfolios.

Under the scheme of amalgamation dated December 16, 2025, all assets, liabilities and obligations of Cyan and DH Partners will be transferred to Dawood Lawrencepur Limited. In return, DLL will issue shares to the shareholders of the merging entities.

According to disclosures made to the Pakistan Stock Exchange, DH Partners shareholders, excluding Dawood Lawrencepur, will receive 4.7724 ordinary shares of DLL for every 100 shares held. Cyan shareholders will be issued 7.2974 ordinary shares of DLL for every 100 shares.

The swap ratios were determined based on audited financial statements for the period ending October 31, 2025, independent valuations of immovable assets, and calculations by a jointly appointed financial adviser.

Dawood Lawrencepur Limited, a subsidiary of Dawood Corporation (Private) Limited, manages investments in associated companies, including those in renewable energy such as wind and solar, alongside maintaining a capital market portfolio.

Cyan Limited focuses on equity investments in high-growth companies, while DH Partners Limited, listed in February 2025, operates as an investment management firm overseeing equity portfolios.

The Commission said the transaction is unlikely to substantially lessen competition, adding that such restructuring may improve efficiency in portfolio management and strengthen institutional investment capacity.