CCP approves United Ethanol acquisition of PCRCL in no-overlap conglomerate deal

The Competition Commission of Pakistan has approved the acquisition of shareholding in Pakistan Corporate Restructuring Company Limited by United Ethanol Industries Limited under a Phase-I review conducted in line with the Competition Act, 2010.

The approval relates to the purchase of PCRCL’s ordinary shares from eight commercial banks, including United Bank Limited, MCB Bank Limited, Allied Bank Limited, Meezan Bank Limited, Habib Metropolitan Bank Limited, Habib Bank Limited, Bank AL Habib Limited and Bank Alfalah Limited.

PCRCL is a public limited company licensed by the Securities and Exchange Commission of Pakistan, operating as a restructuring entity focused on the acquisition, management and resolution of non-performing assets, as well as the revival, reorganisation and liquidation of financially distressed businesses.

United Ethanol Industries is engaged in agribusiness and industrial manufacturing, producing fuel-grade and industrial ethanol through value-added agricultural processing.

According to the CCP, the transaction was assessed in the market for non-performing asset resolution and restructuring advisory and agency services.

The regulator classified the deal as a conglomerate merger, noting that the two entities operate in unrelated sectors with no horizontal or vertical overlap.

It concluded that the acquisition is unlikely to lessen competition, create barriers to entry or strengthen any dominant market position.

The transaction was approved under Section 31 of the Competition Act, 2010, with the CCP reiterating its focus on facilitating investment while ensuring efficient merger review and maintaining a competitive, transparent market structure.