CCP Approves Treet Corporation’s Bigger Stake in Car Parts Manufacturer

The Competition Commission of Pakistan (CCP) has approved Treet Corporation Limited’s plan to increase its shareholding in Loads Limited through a rights issue after determining that the transaction would not reduce competition in the market.

According to the CCP, Treet sought regulatory approval under the Competition Act, 2010 to subscribe to additional ordinary shares offered by Loads Limited as part of its rights issue.

Treet Corporation is a publicly listed company that manufactures razors and razor blades, while its subsidiaries operate in businesses including batteries, corrugated packaging, soaps, medicinal concentrates, electric bikes, rickshaws, and workforce solutions. Loads Limited is also a listed company that manufactures radiators, exhaust systems, and metal sheet components for Pakistan’s automotive industry.

During its Phase I review, the commission identified the relevant markets as exhaust systems, radiators, and metal sheet components in Pakistan. It noted that Treet and Loads are already associated companies with common management representation.

The CCP concluded that the transaction is a capital investment between associated companies and will not change the market shares of either business or negatively affect competition. It also found that the deal would not create barriers for new entrants or strengthen the companies’ market position.

Based on its assessment, the commission approved the transaction under the Competition Act, saying the increased investment is unlikely to substantially lessen competition or create a dominant market position.