ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved Maple Leaf Cement Factory Limited’s acquisition of additional shareholding in Pioneer Cement Limited, concluding that the transaction will not create a monopoly or weaken competition in the cement sector. The decision was issued on November 27, 2025, following a pre-merger application submitted on November 19.
The transaction involves Maple Leaf purchasing additional shares of Pioneer Cement through the Pakistan Stock Exchange. The shares are being acquired from a consortium of sellers, including Vision Holdings Middle East Limited, Inship Management Limited, Imperial Developers and Builders (Pvt.) Limited, Sealog (Pvt.) Ltd, Inshipping (Pvt.) Limited, Inservey Pakistan (Pvt.) Ltd, and Forbes Shipping Company (Pvt.) Limited. Maple Leaf, a subsidiary of Kohinoor Textile Mills Limited, already maintains shareholding in Pioneer through itself and its associated company, Maple Leaf Capital Limited.
In its Phase-I review, the CCP defined the relevant product market as the production and sale of grey cement, with the geographic scope covering Pakistan. The regulator classified the proposed acquisition as a horizontal transaction since both Maple Leaf and Pioneer operate at the same level of the supply chain and manufacture the same product. Maple Leaf operates in both grey and white cement markets, while Pioneer operates exclusively in grey cement.
The Commission found that despite the overlap, the merged entity’s combined market share would remain moderate. It added that competitive pressure from several large cement producers—each holding comparable or larger shares—would prevent the merged entity from acting independently of market forces. The CCP noted no material risk of unilateral effects, stating that the presence of multiple sizeable competitors would restrain any attempt to raise prices or restrict output.
The Commission also determined that coordinated effects were unlikely, as the market already consists of several independent players, and there are no vertical elements in the transaction that could lead to input foreclosure or distribution restrictions.
Concluding its assessment, the CCP ruled that the acquisition does not substantially lessen competition and does not create or strengthen a dominant position in the relevant market.
