CCP clears Ranipur sugar mills takeover by Saakh Pharma, United Ethanol

The Competition Commission of Pakistan (CCP) has approved the acquisition of majority shareholding in Ranipur Sugar Mills by Saakh Pharma Limited and United Ethanol Industries Limited, stating that the transaction is unlikely to distort market competition.

The clearance was granted following a Phase I review in which the Commission concluded that the transaction constitutes a conglomerate merger, involving businesses operating in distinct sectors with only limited vertical interaction and no significant horizontal overlap.

However, the Commission observed during proceedings that the parties had completed the transaction prior to securing the required regulatory approval. It reiterated that pre-merger clearance is a mandatory statutory obligation for notifiable transactions and must be obtained before execution. The applicants subsequently provided an undertaking to ensure compliance with legal requirements in future dealings.

From a competition standpoint, the regulator noted that Ranipur Sugar Mills holds a modest position in the market and that the acquisition does not create material supply dependencies or raise concerns about market concentration. On this basis, the Commission determined that the deal would neither create nor strengthen a dominant position in the relevant markets.

Ranipur Sugar Mills is engaged in the production and sale of sugar, related by-products, and electricity generated through its in-house power facility. Saakh Pharma operates as a publicly listed manufacturer of pharmaceutical and biological products, while United Ethanol Industries is involved in ethanol production and industrial processing within the agribusiness sector.

The approval comes amid ongoing consolidation across Pakistan’s sugar and allied industries, where companies are increasingly diversifying into value-added segments such as ethanol and bio-based products to improve margins and operational efficiency.