ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the acquisition of 100 percent equity shares of M/s National Security Printing Company (Private) Limited by M/s Pakistan Security Printing Corporation (Private) Limited marking a pivotal step in the reorganization of Pakistan’s security printing sector.

This strategic transaction is aimed at enhancing efficiency through economies of scale and eliminating redundancies within government-owned enterprises.

The Acquirer, Pakistan Security Printing Corporation, a wholly-owned subsidiary of the State Bank of Pakistan (SBP), is entrusted with printing currency notes and prize bonds on behalf of the SBP. The Target, National Security Printing Company, specializes in printing essential security documents such as passports, degrees, cheques, and various government stamps.

CCoSOEs approves NSPC-PSPC re-merger

The acquisition represents a consolidation of security printing operations under a unified framework, all within the control of the Federal Government and the SBP. This reorganization is expected to streamline operations, reduce duplication of efforts, and enhance resource allocation, ultimately contributing to the long-term stability of Pakistan’s security printing infrastructure. Despite the consolidation, there will be no shift in market dynamics.

The Target will retain its exclusive market share in the printing of vital security documents, while the Acquirer will continue its role in currency and prize bond printing. Both entities remain under the State Bank of Pakistan’s management, ensuring that the transaction poses no competitive concerns.

The Draft Share Purchase Agreement (DSPA) governing the transaction has been submitted to the Finance Division for approval, with the transaction value currently under negotiation. The merger is seen as a necessary step towards creating greater operational synergies while maintaining the Federal Government as the ultimate owner post-transaction.

Copyright Business Recorder, 2024