CCP approves Crest Garments–Standpharm deal, cites no competition concerns

The Competition Commission of Pakistan (CCP) has authorised the transaction of Standpharm Pakistan (Private) Limited by Crest Garments International (Private) Limited, read a statement on Wednesday.

The transaction forms part of an internal corporate restructuring, as both entities are under the common ownership and management of the same group of individual shareholders, it added.

Standpharm Pakistan operates in the pharmaceutical and nutraceutical sectors, offering a diverse product portfolio across 19 therapeutic categories, including anti-rheumatics, analgesics, vitamins and mineral supplements, gastrointestinal drugs, antibiotics, and psycholeptics, among others.

Meanwhile, Crest Garments International, primarily engaged in the garment manufacturing business, has no existing operations in the pharmaceutical or nutraceutical markets.

Following its detailed assessment, the CCP concluded that the proposed acquisition does not give rise to any horizontal, vertical, or conglomerate overlaps between the merging entities and will not result in increased market concentration.

“The pharmaceutical and nutraceutical markets in Pakistan remain competitive, with a large number of active players, moderate market concentration, and continued entry of new firms.

Therefore, the transaction is not expected to substantially lessen competition or create a dominant position in any relevant market,” CCP said.

The commission further noted that the transaction constitutes an intra-group restructuring, resulting in no change in ultimate control or management.

It was of the view that the existing market dynamics, competitive pressures, and opportunities for new entrants in the pharmaceutical and nutraceutical sectors “will remain unaffected”.

Days ago, the CCP authorised the acquisition of Novartis Pharma (Pakistan) Limited by International Investment II Limited (IIL).

The commission observed that while certain overlaps existed between Novartis Pakistan and IIL in therapeutic classes, such as diabetes, anti-rheumatics, anti-epileptics, and cardiovascular agents, the combined market shares were “not significant enough” to raise competition concerns.