The Competition Commission of Pakistan (CCP) has approved the integration of Messrs. With M/S and limited global helicopter development. Bank Makrama Limited, under a scheme of arrangements.
The proposed transaction was filed under Section 11 of the Competition Act, 2010, and was reviewed, with the contest (integration control) regulations, 2016. The merger includes the alliance of the Global Heli Development Limited, a public limited company, primarily engaged in real estate and infrastructure development, including Bank Macharam Limited, a publicly listed banking company.
According to the agreement, bank Machama Limited will issue common shares to shareholders of the Global Heli Development Limited. After completion, the bank will remain a survivor institution, while the World Heli Development will be dissolved.
The Commission reviewed this transaction and reviewed the relevant market as “commercial banking” in Pakistan’s geographical boundaries. Based on the data and information provided by the State Bank of Pakistan, it was noted that the bank Machama has a minor market share in the commercial banking sector, and since the global helicopter does not work in the banking sector, there is no horizontal overlaps in this transaction.
The commission found that the proposed integration is unlikely to be substantially reduced, nor does it produce or strengthen the dominant position in the market. The purpose of this transaction is to mainly to measure the minimum capital requirements and to enhance its operational capabilities to the bank Macharam.
According to the CCP, proposed transactions are allowed under Section 31 (1) (D) (I) of the Competition Act, 2010.