CCP Clears Lotte Group Restructuring

The Competition Commission of Pakistan (CCP) has approved an internal restructuring within South Korea’s Lotte Group after determining that the transaction will not affect competition in Pakistan’s food and beverage sector.

The deal involves Japan-based Lotte Co., Ltd. acquiring shares in Lotte Confectionery (S.E.A.) Pte. Ltd., a Singapore-based company, from Lotte Wellfood Co., Ltd.

Since the target company holds stakes in Lotte Kolson and Lotte Akhtar Beverages in Pakistan, the transaction required prior approval from the CCP under the Competition Act, 2010.

Following a Phase-I merger review, the Commission concluded that the transaction is an internal ownership transfer within the Lotte Group and will not change the competitive landscape in Pakistan.

The CCP noted that the acquiring company has no confectionery or food manufacturing operations in Pakistan. As a result, the acquisition will neither increase market concentration nor create or strengthen a dominant position in any relevant market.

During its assessment, the Commission examined competition in the markets for pasta, chewing gum, savoury snacks, sweet biscuits, cakes, and beverages, with Pakistan identified as the relevant geographic market. It found that the market positions of Lotte Kolson and Lotte Akhtar Beverages would remain unchanged after the transaction, with no adverse impact on competition.

Based on these findings, the CCP approved the acquisition under Section 31(1)(d)(i) of the Competition Act, 2010, concluding that the transaction would not substantially lessen competition.

The Commission said the decision reflects its commitment to facilitating investment and corporate restructuring while ensuring competitive markets. It added that timely merger approvals help improve the ease of doing business without compromising competition safeguards.