The Competition Commission of Pakistan (CCP) has approved the pre-merger application for the establishment of a joint venture between the National Logistics Corporation (NLC) and DP World Logistics FZE (DWLF).
The investment, facilitated by the Special Investment Facilitation Council (SIFC), aims to enhance Pakistan's logistics and freight industry while ensuring fair competition in the market, said a press release issued here on Sunday.
The transaction involves NLC acquiring a 60 percent equity stake in the joint venture, with DWLF holding the remaining 40 percent.
The venture aims to enhance Pakistan's road freight logistics sector by leveraging NLC's domestic expertise and DP World's global supply chain solutions.
The relevant market for the transaction was identified as 'road freight logistics', a key segment in Pakistan's trade and transport sector.
Following a detailed competition assessment, CCP determined that the transaction does not result in a substantial lessening of competition or the creation of a dominant market position.
The review also considered horizontal overlaps in road freight logistics and potential vertical integration effects.
The CCP's analysis concluded that the market remains competitive, with multiple players ensuring continued competition.
The joint venture highlights Pakistan's growing appeal for foreign investment in logistics.
It is expected to improve infrastructure, lower transport costs, and boost Pakistan's trade competitiveness in the region.
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