CCP clears Treet Ltd's rights issue in Loads Ltd

Transaction won't affect market competition, regulator says after Phase-I review

ISLAMABAD:

The Competition Commission of Pakistan (CCP) has approved Treet Corporation Limited's proposal to subscribe to additional ordinary shares of Loads Limited through a rights issue, according to a statement issued on Tuesday.

Treet Corporation submitted a pre-merger application under Section 11 of the Competition Act, 2010, seeking approval for the transaction.

Treet Corporation is a public listed company engaged in the manufacturing and sale of razors and razor blades, while its subsidiaries operate in batteries, corrugated boxes, soaps, medicinal concentrates, electric bikes, rickshaws and workforce solutions. Loads Limited, also a public listed company, manufactures radiators, exhaust systems and metal sheet components for Pakistan's automotive industry.

During its Phase-I review, the Commission identified the relevant product markets as exhaust systems, radiators, and metal sheet components, with the geographic market being Pakistan.

The Commission observed that Treet Corporation and Loads Limited are already associated undertakings with common management representation. The proposed transaction involves Treet increasing its shareholding in Loads Limited through a rights issue and represents a purely equity investment between associated undertakings. The competition assessment found that the transaction would not alter market shares or affect competition in the relevant markets. The Commission concluded that the proposed subscription would neither create barriers to market entry nor significantly enhance market power. Consequently, the transaction is not likely to result in any adverse effects on competition or lead to a substantial lessening of competition.