Competition watchdog approves Treet’s larger stake in Loads Limited
Pakistan’s Competition Commission approved Treet Corporation’s plan to increase its shareholding in Loads Limited after a Phase-I review. The CCP found the investment won’t weaken competition or strengthen dominance.
The Competition Commission of Pakistan (CCP) has authorised Treet Corporation Limited’s proposed increase in its shareholding in Loads Limited, ruling that the transaction is unlikely to reduce competition or strengthen a dominant market position.
The approval follows a Phase-I merger review under the Competition Act, 2010, after Treet sought clearance under Section 11 to subscribe to additional ordinary shares of Loads through a rights issue.
According to the commission, the transaction is essentially an equity investment between companies that are already associated undertakings and share common management representation. The review found that increasing Treet’s stake would neither alter the companies’ market shares nor change the competitive structure of the industry.
For the purpose of its assessment, the CCP defined the relevant product markets as exhaust systems, radiators and metal sheet components, with Pakistan identified as the relevant geographic market. It concluded that the proposed investment would not create barriers for new entrants, materially increase the parties’ market power or substantially lessen competition.
On the basis of these findings, the commission approved the transaction under Section 31(1)(d)(i) of the Competition Act, 2010, stating that it does not create or strengthen a dominant position.
Loads Limited is a publicly listed manufacturer supplying radiators, exhaust systems and metal sheet components to Pakistan’s automotive industry. Treet Corporation Limited, also listed on the stock exchange, is primarily engaged in the production of razors and razor blades, while its subsidiaries have operations spanning batteries, corrugated packaging, soaps, medicinal concentrates, electric bikes, rickshaws and workforce solutions.
The regulator said the decision underscores its commitment to enabling legitimate corporate investments and restructuring while maintaining competitive markets, promoting efficiency and safeguarding consumer welfare.
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