The Competition Commission of Pakistan (CCP) has approved the proposed investment by the Central Depository Company (CDC) of Pakistan Limited in Naymat Collateral Management Company Limited, following a Phase I review conducted under the Competition Act 2010.
According to the CCP, CDC had submitted a pre-merger application seeking approval to subscribe to additional ordinary shares in NCMCL, allowing it to increase its shareholding in the company.
CDC, established in 1993, is one of Pakistan’s major capital market institutions providing electronic custody, settlement facilitation, and depository services.
NCMCL, incorporated in 2020, operates as a collateral management company responsible for warehouse oversight, verification, and reporting services for commodities held as collateral.
The CCP noted that NCMCL is currently the only collateral management company registered with the Securities and Exchange Commission of Pakistan for accreditation and oversight of warehouses operating under Pakistan’s Electronic Warehouse Receipt framework.
During its assessment, the Commission defined the relevant market as collateral management and warehousing oversight services within Pakistan and concluded that the transaction would not significantly alter competition dynamics because the companies operate in separate and unrelated business segments.
The CCP further stated that the acquisition neither constituted horizontal nor vertical integration, reducing the likelihood of anti competitive effects such as market foreclosure or collusion.
The regulator formally authorized the transaction under Section 31 of the Competition Act, saying the decision reflects its continued commitment to facilitating investment and efficient market transactions while protecting market competition and consumer welfare.
