The Competition Commission of Pakistan (CCP) has approved the acquisition of assets of JK Sugar Mills (Private) Limited by Naubahar Bottling Company (Private) Limited through Asset Purchase Arrangement (APA).
JK Sugar Mills is a private company duly incorporated under the laws of Pakistan. It is primarily involved in the production and distribution of white crystalline sugar and also owns a Pepsi beverage franchise in Pakistan.
The acquirer, Naubahar Bottling Company’s a private company duly incorporated under the laws of Pakistan. It is engaged in the business of manufacturing beverages such as, Pepsi, Mountain Dew, 7up, Mirinda, Sting, Slice Mango, Aquafina, and Gatorade.
The Phase-I competition assessment by the CCP identified ‘Beverages – Non-alcoholic ready to drink ‘ as the relevant market. The estimate market share of the Naubahar Bottling Company will rise minutely and upon consummation of the transaction, the JK Sugar Mills will exit the market. Given that the transaction does not lead to the dominance of the acquirer in the relevant market, the CCP has approved the acquisition.
The acquisition underscores the potential for operational efficiency leading to the significant growth in the fast-moving consumer goods (FMCG) sector, SECP said.