Business

Alfalah Asset Management Secures CCP Approval for Strengthening Market Position

The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of management rights of certain funds of Faysal Asset Management Limited by Alfalah Asset Management Limited.

This approval follows the execution of a Transfer of Management Rights Agreement between the two entities, said a press release issued on Friday.

Alfalah Asset Management Limited, a public unlisted company, is a prominent Asset Management Company (AMC) and investment advisor. The company operates under a license issued by the Securities and Exchange Commission of Pakistan (SECP) in accordance with the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003.

Similarly, Faysal Asset Management Limited, also a public unlisted company, functions as an AMC and investment advisor under the regulatory framework of the SECP.

Under the terms of the Agreement, Alfalah Asset Management Limited will acquire the management rights of certain funds currently under the management of Faysal Asset Management Limited. The CCP, in its assessment, identified the relevant product market as ‘Asset Management Services’ and noted the horizontal nature of the transaction due to the overlap in operations between the two entities.

Following the completion of the transaction, the market share of Alfalah Asset Management Limited is anticipated to experience a slight increase, while the market share of Faysal Asset Management Limited will correspondingly decrease. Crucially, the CCP’s analysis has determined that this acquisition will not lead to market dominance by Alfalah Asset Management Limited in the relevant market.

Share
Published by
ProPK Staff