The Competition Commission of Pakistan (CCP) approved the acquisition of assets of Hotel Margala Private Limited by Nishat Hotels and Properties Limited (NHPL), read a statement issued on Saturday.
Under the Sale and Purchase Agreement, Nishat Hotels and Properties Limited will acquire the assets of Hotel Margala, including leasehold rights to its plot on Srinagar Highway, the entire built-up structure of the motel, fittings and fixtures, utility connections, associated deposits, and all movable property on the premises.
According to the statement, as part of its competition assessment, the CCP examined potential concerns related to market dominance and the impact on competition following the merger.
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“The relevant product market has been defined as hospitality services, with the relevant geographic market determined to be Islamabad. Hotel Margala, a 92-room facility, currently holds an estimated 5.46% market share in Islamabad’s hospitality sector.”
CCP noted that the transaction is horizontal, as both companies operate within the hospitality sector; however, their geographic operations are distinct.
“Nishat Hotels and Properties Limited primarily operates in Lahore, while Hotel Margala Private Limited is exclusively based in Islamabad. Given the absence of a direct geographic market overlap, the transaction is unlikely to impact competitive dynamics or raise market concentration concerns,” it said.
It is pertinent to mention that NHPL operates two hotels in Lahore.
Meanwhile, the CCP also observed that barriers to entry in the hospitality sector remain moderate, mitigating any potential anticompetitive effects.
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