CCP approves acquisition of Rafhan Maize shares by Nishat-led consortium

ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of a significant shareholding in Rafhan Maize Products Company Limited by a consortium led by the Nishat Group, following a Phase-I review under Section 11 of the Competition Act, 2010.

The approval comes months after reports emerged that US-based Ingredion Incorporated had agreed to divest up to 75.10 percent of its stake in Rafhan Maize to the Nishat Group in what is being described as one of Pakistan’s largest mergers and acquisitions transactions in nearly two decades. The transaction, executed through Share Purchase Agreements with Ingredion, the Mannoo family, and Nishat entities, will grant Nishat a controlling stake in the company, which has an estimated market capitalisation of around Rs 100 billion (approximately USD 355 million).

Rafhan Maize, a subsidiary of Ingredion, has been a cornerstone of Pakistan’s corn refining industry since its establishment in 1953. Over the decades, it has evolved into a leading agro-industrial enterprise, operating three production facilities and maintaining a production capacity several times higher than its nearest competitor—cementing its position as the market leader in the starch segment.

The acquiring side comprises multiple Nishat Group entities, including Nishat Hotels and Properties Limited, D G Khan Cement Company Limited, Nishat Mills Limited, Lalpir Power Limited, Pakgen Power Limited, Nishat Power Limited, and Nishat Chunian Power Limited, along with associated individuals.

In its assessment, the CCP examined the potential impact of the transaction on competition across relevant markets. Rafhan operates in the upstream market for maize-based derivatives such as starch, liquid glucose, dextrose, dextrin, and gluten meals, while Nishat Mills Limited operates downstream in textile manufacturing, where starch is used as a key input.

The Commission identified a vertical linkage between the upstream and downstream markets but concluded that the transaction is unlikely to substantially lessen competition. It noted that, despite Rafhan’s strong position, the presence of alternative domestic suppliers and the availability of imports would continue to exert competitive pressure. Moreover, starch accounts for a relatively small share of input costs in textile production, limiting any potential foreclosure concerns.

The regulator further observed that Rafhan neither possesses the ability nor the incentive to restrict supply, given the availability of spare capacity in the market and competition from other suppliers. On the downstream side, Nishat entities were found not to hold sufficient market power to distort competition.

Based on this analysis, the Commission determined that the transaction does not create or strengthen a dominant position and does not raise competition concerns. The acquisition has therefore been authorised under Section 31(1)(d)(i) of the Competition Act, 2010.

The approval underscores CCP’s policy stance of facilitating investment and corporate restructuring while safeguarding competitive market structures. The transaction remains subject to completion of customary conditions and regulatory formalities.

Copyright Business Recorder, 2026