ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval to a merger in the Health Insurance and Health Takaful sector.

The approved transaction involves the acquisition of 100 percent shareholding of M/s EFU Health Insurance Limited by M/s EFU Life Assurance.

The acquirer, EFU Life Assurance is a public listed company. It is engaged in life insurance business including ordinary life business and pension fund business. Whereas, the target company, EFU Health Insurance Limited, is an unlisted public limited company.

Its principal activities include selling health insurance and health takaful cover in Pakistan. EFU Life Assurance is acquiring 100 percent shareholding of EFU Health from M/s EFU Services (Private) Limited and six other shareholders. EFU Life will be issuing its own ordinary shares at a swap ratio to the current shareholders of EFU Health.

Following the Phase 1 Review, the CCP determined that the proposed transaction would not lead to the acquirer attaining dominance in the relevant market after the completion of the transaction. Cons equently, the merger has been authorised.

The approval of the acquisition of EFU Health by EFU Life marks a significant development in the health insurance and health takaful sector of Pakistan.

Copyright Business Recorder, 2024

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