CCP approves Nishat consortium’s Rafhan Maize share acquisition

The Competition Commission of Pakistan (CCP) has approved the acquisition of shares in Rafhan Maize Products Company Limited by a consortium led by Nishat Group entities, the regulator said on Monday.

The approval, granted under Section 31(1)(d)(i) of the Competition Act, 2010, follows a Phase-I review conducted under Section 11, which found no substantial lessening of competition.

The transaction involves the purchase of shares from Ingredion Incorporated, the majority seller, as well as from other individual shareholders.

According to the CCP, the review focused on the potential impact in the upstream maize derivative market, where Rafhan Maize Products operates.

The assessment identified a vertical overlap with Nishat Mills Limited’s downstream textile business, which uses starch as an input.

However, the commission concluded that the overlap does not pose competition concerns, citing the presence of alternative suppliers and imports, along with the limited share of starch in overall textile production costs.

It said Rafhan Maize Products lacks both the ability and incentive to engage in anti-competitive conduct, pointing to spare capacity in the upstream market and existing competitive pressures.

The regulator also determined that the acquiring entities do not hold sufficient market power to distort competition.

The acquiring consortium includes Nishat Hotels and Properties Limited, D.G. Khan Cement Company Limited, Nishat Mills Limited, Lalpir Power Limited, Pakgen Power Limited, Nishat Power Limited, Nishat Chunian Power Limited, and associated individuals.

The CCP said the approval reflects its mandate to ensure competitive market conditions while enabling business growth.