The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of a certain shareholding in TCS Logistics (Private) Limited by Nippon Express (South Asia & Oceania) Pte. Limited.
Nippon Express is a wholly-owned subsidiary of Nippon Express Holdings, a global logistics company headquartered in Tokyo, Japan. Nippon Express Pte. Limited is incorporated in Singapore and operates in the South Asia and Oceania region.
Meanwhile, TCS Logistics (Private) Limited is a Pakistani company operating in the third-party logistics (3PL) sector. Both companies provide 3PL services within Pakistan, and the CCP identified the relevant market as third-party logistics services in the country.
After a thorough Phase-I review under Section 11 of the Competition Act, 2010, the CCP concluded that the transaction does not raise any significant competition concerns. The combined market share of the parties after the transaction remains negligible, and the acquisition is unlikely to lead to a substantial lessening of competition in the market.
The Commission further observed that the transaction is expected to yield efficiency gains and bring international logistical expertise into the domestic market. These developments are anticipated to improve service quality, enhance operational capabilities, and contribute to the development of Pakistan’s logistics sector. Importantly, the Commission found no indication that the transaction would create or strengthen barriers to entry in the relevant market.
Based on the information reviewed, the CCP has authorized the proposed acquisition under Section 31 of the Competition Act, 2010.
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