CCP approves merger of Millat Equipment with Millat Tractors

The Competition Commission of Pakistan (CCP) has granted approval for the merger of M/s. Millat Equipment Limited (MEL) with M/s. Millat Tractors Limited (MTL) under a Scheme of Arrangement sanctioned by the Lahore High Court. Upon the court’s sanction, MEL will be dissolved, and MTL will emerge as the surviving entity.

As per details, Millat Tractors Limited, a publicly listed company in Pakistan, specializes in the manufacturing and marketing of agricultural tractors (Massey Ferguson 300 series), forklift trucks, diesel engines, diesel generator sets and a wide range of allied agricultural and industrial implements. 

Millat Equipment Limited (MEL), a public limited company, focuses on manufacturing gears, shafts, hydraulic pumps, and engine balancers exclusively for Massey Ferguson 300 series tractors assembled by MTL. Previously the company was a subsidiary of the original MTL. 

In May 2024, the board of directors of MTL approved the amalgamation of MEL into MTL. This merger aimed to optimise manufacturing processes, improve product quality, and enhance the overall asset base of MTL, allowing the company to benefit from economies of scale and pursue further expansion opportunities​.

The CCP’s merger assessment has identified ‘Tractor Parts’ as the relevant product market within the geographical boundaries of Pakistan. Given MEL’s exclusive engagement in supplying parts for Massey Ferguson 300 series tractors, the merger will not alter the market share of the involved entities. 

Furthermore, the transaction will neither create nor strengthen a dominant position in the relevant market, ensuring that competition remains unaffected.

The merger is expected to increase MTL’s asset base, enabling it to capitalise on economies of scale, optimise operational efficiencies and strengthen its competitive position within the industry.