The Competition Commission of Pakistan (CCP) has approved an internal restructuring within South Korea’s Lotte Group after determining that the transaction will have no impact on competition or market dynamics in Pakistan.

The approval relates to Japan-based Lotte Co., Ltd.’s acquisition of shares in Singapore-based Lotte Confectionery (S.E.A.) Pte. Ltd. from Lotte Wellfood Co., Ltd. Since the target company holds stakes in Lotte Kolson and Lotte Akhtar Beverages in Pakistan, the transaction required prior approval from the CCP under the Competition Act, 2010.

Following a Phase-I merger review, the Commission concluded that the transaction is solely an internal transfer of ownership within the Lotte Group and will not change the competitive landscape in Pakistan’s food and beverage industry.

The CCP noted that the acquiring company has no confectionery or food business in Pakistan. As a result, the transaction will neither increase market concentration nor create or strengthen a dominant market position.

As part of its assessment, the Commission reviewed competition in the markets for pasta, chewing gum, savoury snacks, sweet biscuits, cakes, and beverages. It found that the market shares of Lotte Kolson and Lotte Akhtar Beverages will remain unchanged after the ownership transfer, with no adverse impact on competition.

Based on these findings, the CCP approved the transaction under Section 31(1)(d)(i) of the Competition Act, 2010, concluding that it would not substantially lessen competition in any relevant market.

The Commission said the decision underscores its commitment to facilitating investment and corporate restructuring while maintaining competitive markets. It added that timely merger reviews help provide regulatory certainty for businesses without compromising competition safeguards.