The Competition Commission of Pakistan (CCP) has approved the acquisition of a stake in Pakistan Corporate Restructuring Company Limited (PCRCL) by United Ethanol Industries Limited following a Phase I review under the Competition Act, 2010.

PCRCL is a licensed restructuring firm regulated by the Securities and Exchange Commission of Pakistan, engaged in acquiring, managing, and resolving non-performing assets, as well as restructuring and liquidating financially distressed businesses.

United Ethanol Industries Limited is a publicly listed company operating in the production and sale of fuel-grade and industrial ethanol, along with related agribusiness products.

The transaction involves the purchase of ordinary shares in PCRCL from eight major commercial banks, including United Bank Limited, MCB Bank, Allied Bank, Meezan Bank, Habib Metropolitan Bank, Habib Bank, Bank AL Habib, and Bank Alfalah.

During its assessment, the CCP examined whether the deal could affect competition in the market for non-performing asset resolution and restructuring services in Pakistan.

The commission determined that the acquisition represents a conglomerate merger, as both companies operate in unrelated sectors with no direct market overlap. It concluded that the transaction is unlikely to reduce competition, create entry barriers, or strengthen any dominant position in the market.

Following its review, the CCP approved the deal under Section 31 of the Competition Act, 2010, stating that it does not pose any adverse impact on market competition.

The regulator reiterated its commitment to facilitating investment, ensuring fair competition, and maintaining transparency through timely merger evaluations.