ISLAMABAD: The Competition Commission of Pakistan (CCP) has authorised the acquisition of shareholding in M/s Pakistan General Insurance Company Limited (PGICL) by Muhammad Shahzad Habib and his family members, following a Phase-I review conducted under the Competition Act, 2010.
The transaction was brought before the Commission as an ex-post facto application, as the acquisition had been consummated prior to obtaining the mandatory approval required under Section 11 of the Act. The Commission took notice of this procedural lapse and emphasised that pre-merger approval is a statutory requirement that must be obtained before giving effect to any notifiable transaction.
During the proceedings, the Acquirers submitted that the transaction would not result in any adverse impact on competition in the relevant market. The Commission conducted a detailed assessment of the transaction, including its structure, the profile of the acquiring parties, and the competitive dynamics of the general insurance sector in Pakistan.
The relevant market was identified as “general insurance” within Pakistan. The Commission noted that the target company has only recently resumed its operations and currently holds negligible market share. Furthermore, the general insurance sector in Pakistan comprises multiple players operating across different scales, indicating a competitive and regulated market environment.
Based on its analysis, the Commission concluded that the transaction does not pose any horizontal or vertical concerns, nor does it create or strengthen a dominant position in the relevant market. Accordingly, the transaction has been authorised under the Competition Act, 2010.
However, the Commission directed the Acquirers to submit a written undertaking ensuring strict compliance with the law in future and to refrain from executing any notifiable transaction without prior approval of the Commission.
The CCP reiterates that compliance with merger control provisions is essential to ensure transparency, maintain fair competition, and protect consumer welfare in Pakistan’s markets.
Copyright Business Recorder, 2026
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