CCP clears Lotte Group's restructuring involving operations in Pakistan

The Competition Commission of Pakistan (CCP) has approved a pre-merger application, paving the way for an internal restructuring within the South Korean Lotte Group, while finding no competition concerns in Pakistan’s food and beverage markets.

According to a statement released on Monday, the transaction involves Japan’s Lotte Co., Ltd acquiring a shareholding in Singapore-based Lotte Confectionery (S.E.A) Pte. Ltd. from Lotte Wellfood Co., Ltd.

As the target company owns interests in Pakistan’s Lotte Kolson and Lotte Akhtar Beverages, the share acquisition required prior clearance from the CCP under the Competition Act, 2010.

“Following a Phase-I competition assessment, the commission concluded that the transaction is purely a change in ownership within the Lotte Group and will not alter market structure or competitive dynamics in Pakistan,” it said.

CCP noted that the acquiring company does not conduct confectionery or food business in Pakistan. Consequently, the transaction will neither increase market concentration nor create or strengthen a dominant position in any of the relevant product markets.

The CCP assessed competition across the markets for pasta, gum, savoury snacks, sweet biscuits, cakes, and beverages, with Pakistan identified as the relevant geographic market. The review found that the market shares of Lotte Kolson and Lotte Akhtar Beverages would remain unchanged following the transaction, with no adverse effects on competition.

“Accordingly, the Commission authorised the acquisition under Section 31(1)(d)(i) of the Competition Act, 2010, concluding that the transaction would not result in a substantial lessening of competition,” it said.

CCP said that the decision reflects its commitment to facilitating investment, corporate restructuring and business expansion through efficient merger review.