CCP approves acquisition of Rafhan Maize shares by Nishat Group
- Finds no substantial risk of reduced competition
The Competition Commission of Pakistan (CCP) has approved the acquisition of shares in Rafhan Maize Products Company Limited by a consortium led by Nishat Group entities, following a Phase-I review under Section 11 of the Competition Act, 2010, according to a press release.
The acquisition involves shares of Rafhan Maize Products being purchased from Ingredion Incorporated (the majority seller) and other individual shareholders.
The acquiring entities are Nishat Hotels and Properties Limited, D.G. Khan Cement Company Limited, Nishat Mills Limited, Lalpir Power Limited, Pakgen Power Limited, Nishat Power Limited, Nishat Chunian Power Limited, and associated individuals.
The CCP assessed the transaction’s potential impact on competition, particularly in the upstream maize derivative market, where Rafhan Maize Products operates.
The analysis identified a vertical overlap with Nishat Mills Limited’s downstream textile production, which uses starch.
Despite this overlap, the CCP found no substantial risk of reduced competition, citing the presence of alternative suppliers and imports, as well as the small proportion of starch in textile production costs.
The CCP concluded that Rafhan Maize Products lacks the ability or incentive to engage in anti-competitive behavior due to spare capacity in the upstream market and competitive pressures.
Furthermore, the acquiring entities do not possess sufficient market power to distort competition.
Based on this assessment, the transaction has been approved under Section 31(1)(d)(i) of the Competition Act, 2010, reinforcing the CCP’s role in ensuring fair market conditions while supporting business growth.
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