The Competition Commission of Pakistan (CCP) has approved internal restructuring involving Nishat Chunian Limited (NCL), Nishat Chunian Power Limited (NCPL), Nishat Mills Limited (NML), and the CEO of NCL, Shahzad Saleem.
According to a press release issued by the CCP, this internal restructuring, undertaken as part of the Scheme of Arrangement, aims to streamline the corporate structure of the Nishat Chunian Group.
The CCP’s Phase 1 competition assessment has revealed the primary business activities of each undertaking involved in the transaction.
Nishat Chunian Limited (NCL), a publicly listed company, engages in textile-related operations, including spinning, weaving, dyeing, fabric processing, and the generation and sale of electricity.
Nishat Chunian Power Limited (NCPL), a public listed company, specializes in building, owning, and operating fuel-fired power stations. It functions as an Independent Power Producer (IPP) and has a Power Purchase Agreement with the Central Power Purchasing Agency (Guarantee) Ltd (CPPA-G).
Similarly, Nishat Mills Limited (NML), another publicly listed company, focuses on textile manufacturing with activities spanning spinning, weaving, and the production of various fabrics, while also engaging in electricity generation.
In its assessment, the CCP has identified the relevant product markets as ‘spinning, weaving, home textile, and thermal power generation- CPPA-G’.
The restructuring will lead to a nominal increase in Mr Shahzad’s shareholding in NCL, while NML will experience a slight rise in its shareholding in NCPL.
Despite these changes, the CCP has confirmed that the transaction will not result in any market dominance by the merger parties.
