ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval to the acquisition of Coca Cola (Pakistan) under phase-1 review of the Competition Act, 2010, and the Competition (Merger Control) Regulations, 2016.

Coca-Cola Içecek (Turkey) acquired 49.67 percent shareholding of Coca Cola (Pakistan) through CCI International Holand (one of its subsidiaries) from Atlantic Industries. The transaction involves total consideration of US$300 million.

After this transaction, Coca Cola Turkey will own majority of shareholding in Coca Cola (Pakistan) with management. This is significant vote of confidence that Pakistani economy has great potential for above-average returns on their capital for international investors.

The CCP received a pre-merger application from the acquirer CCI International Holland and the seller Atlantic Industries. The Acquirer is a private limited company and is a wholly owned subsidiary of Coca-Cola Içecek AS, a company existing under the laws of Türkiye. The Ultimate Acquirer owns 49.67% shareholding of the Target and has the management control.

The Target is an unlisted public limited company incorporated in Pakistan. It is engaged in production, selling, trading and distribution of carbonated and non-carbonated beverages with the trade mark of Coca-Cola.

The CCP has examined the Application as well as all the documents and the information provided by the concerned undertakings. The Phase I competition assessment of the intended transaction has revealed the following facts:

The Chairman and Mergers team has streamlined merger system and process to expedite mergers/acquisitions applications to facilitate international investors.

Copyright Business Recorder, 2023