The Competition Commission of Pakistan (CCP) has approved a proposed investment by the Central Depository Company of Pakistan Limited in Naymat Collateral Management Company Limited after completing a Phase I review under the Competition Act, 2010.

According to the regulator, the Central Depository Company (CDC) had filed a pre-merger application seeking permission to acquire additional ordinary shares in Naymat Collateral Management Company Limited (NCMCL), which would increase its equity stake in the firm.

CDC, established in 1993, is a key financial market infrastructure institution providing depository, custody, and settlement services in Pakistan’s capital markets. NCMCL, incorporated in 2020, operates in the collateral management sector, offering warehouse oversight, verification, and reporting services for commodities held under financing arrangements.

The CCP noted that NCMCL is currently the only collateral management company registered with the Securities and Exchange Commission of Pakistan (SECP) for accreditation under the Electronic Warehouse Receipt system.

In its assessment, the Commission defined the relevant market as collateral management and warehouse oversight services in Pakistan. It concluded that the transaction would not materially affect competition, as the two entities operate in distinct and unrelated business segments.

The regulator further stated that the deal does not create horizontal or vertical integration concerns and is unlikely to result in market foreclosure or coordinated pricing effects.

The CCP approved the transaction under Section 31 of the Competition Act, 2010, stating that the decision aligns with its mandate to facilitate investment while maintaining fair competition and protecting market efficiency.