CCP clears Lotte Group's restructuring

Finds no competition concerns in food, beverage markets

ISLAMABAD:

The Competition Commission of Pakistan (CCP) has approved a pre-merger application, paving the way for an internal restructuring within the Lotte Group of South Korea while finding no competition concerns in Pakistan's food and beverage markets.

The transaction involves Japan's Lotte Co Ltd acquiring shareholding in Singapore-based Lotte Confectionery from Lotte Wellfood Co Ltd. As the target company owns interests in Pakistan's Lotte Kolson and Lotte Akhtar Beverages, the share acquisition required prior clearance from the CCP under the Competition Act, 2010.

Following a phase-I competition assessment, the commission concluded that the transaction was purely a change in ownership within the Lotte Group and would not alter market structure or competitive dynamics in Pakistan.

The commission noted that the acquiring company does not conduct confectionery or food business in Pakistan. Consequently, the transaction will neither increase market concentration nor create or strengthen a dominant position in any of the relevant product markets.