ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the entry of a financial institution into the consumer market of “Buy Now Pay Later Service.”
The CCP received an application for acquisition from QistBazaar (Private) Limited for the subscription of 7.2% of its shareholding by Bank Alfalah Limited.
The CCP received a pre-merger application from M/s. QistBazaar (Private) Limited. The application was made pursuant to Section 11 of the Competition Act, 2010 read in conjunction with Regulation 6 of the Competition (Merger Control) Regulations, 2016.
Bank Alfalah enters VC ecosystem, takes 7.2% equity stake in QistBazaar
The proposed transaction entailed subscription of shareholding of the Target by M/s. Bank Alfalah Limited as per “Advance Against Share Agreement.” All requisite information/documentation pertaining to the Application was completed on 4th October 2023.
The CCP examined the application as well as all the documents attached therewith and the information provided by the concerned undertaking(s).
The Phase-I competition assessment of this transaction revealed that the proposed acquisition would not lead to the dominance of the acquirer in the relevant market post-transaction. Therefore, the CCP granted its authorization under Section 11 of the Competition Act, 2010, and CCP’s Merger Regulations, 2016.
QistBazaar sells white goods, electronics and home goods online on the “buy now pay later” model. In the current inflationary situation in the economy, it is a major facility for those who are struggling financially. The purchase of shares by Bank Alfalah will provide the necessary financing for QistBazaar to provide better service and improve its infrastructure.
According to CCP, it will also open up a new online market for consumers enhancing competition with retailers across the region. This will improve services to the consumers. “CCP is very keen to remove all obstacles and impediments in every sector of the economy to enhance competition,” read a statement issued by the CCP.
The merger order said that ancillary restrictions have been reported in this transaction, which may require exemption under Section 5 of the Act, read with Regulation 4 of the Competition Commission (Exemption) Regulations 2020. This Order is without prejudice to any such requirements.
Copyright Business Recorder, 2023