ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the application from Nishat Hotels and Properties Limited for the acquisition of 100 percent shareholding in Nishat Hospitality (Private) Limited.
The transaction was evaluated under Section 11 of the Competition Act, which prohibits mergers and acquisitions that may substantially lessen competition by creating or strengthening a dominant position in a relevant market. The seller, M/s Nishat Mills Limited, a public limited company, sold its 100 percent shareholding in Nishat Hospitality (Private) Limited to Nishat Hotels and Properties Limited.
Nishat Hotels and Properties Limited, a public unlisted company, is a key player in Lahore’s real estate and hospitality sectors, operating a shopping mall, hotel, banquet halls, and the Nishat Residences residential project. Nishat Hospitality (Private) Limited, a private company, provides hospitality services in Lahore. The relevant market for this transaction has been identified as ‘Hospitality Services’, with the geographic scope with in Lahore.
Currently, Nishat Hotels and Properties holds a 10 percent market share, while Nishat Hospitality commands 4 percent. Post-acquisition, the combined entity is expected to hold a 14 percent share in the hospitality market of Lahore. The CCP determined that the transaction would not create market dominance and authorized it, as it does not raise significant competition concerns.
Copyright Business Recorder, 2024
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