The Competition Commission of Pakistan has approved the acquisition of shareholding in Pakistan General Insurance Company Limited by Muhammad Shahzad Habib and his family after completing a Phase I review under the Competition Act, 2010.
The approval comes despite the transaction being carried out before obtaining mandatory clearance, as it was submitted as an ex post facto application. The Commission noted the procedural violation and stressed that prior approval is a legal requirement for such transactions.
During the review, the acquiring parties stated that the deal would not harm competition in the market. The Commission assessed the structure of the transaction, the profile of the buyers, and the overall competitive environment in Pakistan’s general insurance sector.
The regulator identified the relevant market as general insurance in Pakistan and observed that the target company currently holds a negligible market share, having only recently resumed operations. It also noted that the sector includes multiple players, indicating a competitive landscape.
Based on its findings, the Commission concluded that the transaction does not raise concerns related to market dominance or competition. The deal was therefore approved under the Competition Act, 2010.
However, the Commission directed the acquirers to provide a written assurance of compliance with legal requirements in the future and warned against executing similar transactions without prior approval.
The CCP emphasized that adherence to merger control laws is necessary to ensure transparency, fair competition, and consumer protection in Pakistan’s markets.
