The Competition Commission of Pakistan (CCP) has approved the acquisition of assets of M/s Hotel Margala Private Limited by M/s Nishat Hotels and Properties Limited.
Under the Sale and Purchase Agreement, Nishat Hotels and Properties Limited will acquire the assets of Hotel Margala, including leasehold rights to its plot on Srinagar Highway, the entire built-up structure of the motel, fittings and fixtures, utility connections, associated deposits, and all movable property on the premises.
As part of its competition assessment, the CCP examined potential concerns related to market dominance and the impact on competition following the merger. The relevant product market has been defined as hospitality services, with the relevant geographic market determined to be Islamabad.
Hotel Margala, a 92-room facility, currently holds an estimated 5.46 percent market share in Islamabad’s hospitality sector. The transaction is horizontal in nature, as both companies operate within the hospitality sector; however, their geographic operations are distinct. Nishat Hotels and Properties Limited primarily operates in Lahore, while Hotel Margala Private Limited is exclusively based in Islamabad.
Given the absence of a direct geographic market overlap, the transaction is unlikely to impact competitive dynamics or raise market concentration concerns. Furthermore, barriers to entry in the hospitality sector remain moderate, mitigating any potential anticompetitive effects.
They are approving everything except PTCL-Telenor merger.
Maybe they are trying to get concessions out of PTCL! And pTCL is not budging on some of CCPs demands. And honestly I’d also want CCP to squeeze everything out of PTCL at this point in time cuz their parent company has yet to pay that pending 895Million USd. That they owe since 2004.
CCP now has a huge leverage over them where they can force PTCL to share it’s infrastructure of Fiber with other ISPs at cheaper rates so that they can offer better Internet to more areas in Pakistan.
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