Islamabad:
The Pakistan Competition Commission (CCP) has approved the prior request to the merger for the establishment of a joint business between the National Logistics Corporation (NLC) and DP World Logistics Fze (DWLF).
The investment, facilitated by the Special Investment Facilitation Council (SIFC), aims to improve the Pakistan logistics and load industry while guaranteeing fair competition in the market, said a press release issued here on Sunday.
The transaction involves NLC to acquire a 60 percent capital participation in the joint company, with DWLF while maintaining the remaining 40 percent.
The company aims to improve the loading sector of the Pakistan road taking advantage of NLC’s internal experience and Global DP World supply chain solutions.
The relevant market for the transaction was identified as ‘Road Cargo Logistics’, a key segment in the Pakistan trade and transport sector.
After a detailed evaluation of the competition, CCP determined that the transaction does not result in a substantial decrease in competition or the creation of a dominant market position.
The review also considered horizontal overlays in the logistics of the road load and the possible effects of vertical integration.
The PCCH analysis concluded that the market is still competitive, with multiple players ensuring continuous competition.
The joint company highlights Pakistan’s growing attraction for foreign investment in logistics.
It is expected to improve infrastructure, lower transport costs and drive Pakistan’s commercial competitiveness in the region.
