CCP Approves acquisition of Standpharm Pakistan by Crest Garments International

The Competition Commission of Pakistan (CCP) authorized the transaction of Standpharm Pakistan (Private) Limited by Crest Garments International (Private) Limited, which forms part of an internal corporate restructuring as both entities are under the common ownership and management of the same group of individual shareholders, according to the CCP statement.

Standpharm Pakistan operates in the pharmaceutical and nutraceutical sectors, offering a diverse product portfolio across nineteen therapeutic categories, including anti-rheumatics, analgesics, vitamins and mineral supplements, gastrointestinal drugs, antibiotics, and psycholeptics, among others.

Crest Garments International, primarily engaged in the garment manufacturing business, has no existing operations in the pharmaceutical or nutraceutical markets.

Following its detailed assessment, the CCP concluded that the proposed acquisition does not give rise to any horizontal, vertical, or conglomerate overlaps between the merging entities and will not result in increased market concentration.

The pharmaceutical and nutraceutical markets in Pakistan remain competitive, with a large number of active players, moderate market concentration, and continued entry of new firms. Therefore, the transaction is not expected to substantially lessen competition or create a dominant position in any relevant market.

The Commission further noted that the transaction constitutes an intra-group restructuring, resulting in no change in ultimate control or management.

The existing market dynamics, competitive pressures, and opportunities for new entrants in the pharmaceutical and nutraceutical sectors will remain unaffected.