CCP approves Treet’s increased shareholding in Loads Limited

The Competition Commission of Pakistan (CCP) has approved the proposed subscription of additional ordinary shares of Loads Limited by Treet Corporation Limited following a Phase-I review conducted under the Competition Act, 2010. Treet Corporation Limited submitted a pre-merger application to the Commission under Section 11 of the Competition Act, 2010, seeking approval to subscribe to additional ordinary shares of Loads Limited through a rights issue, read a statement. Treet Corporation Limited is a publicly listed company engaged in the manufacturing and sale of razors and razor blades, while its subsidiaries operate in diverse sectors, including batteries, corrugated boxes, soaps, medicinal concentrates, electric bikes, rickshaws and workforce solutions. Loads Limited is also a publicly listed company and is engaged in the manufacturing and sale of radiators, exhaust systems and metal sheet components for Pakistan’s automotive industry. During its review, the CCP identified the relevant product markets as exhaust systems, radiators, and metal sheet components, with the relevant 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 the market shares of the parties or affect competition in the relevant markets. The CCP further concluded that the proposed subscription would neither create barriers to market entry nor significantly enhance the market power of the merger parties. Consequently, the transaction is not likely to result in any adverse effects on competition or lead to a substantial lessening of competition in the relevant market. Accordingly, the commission concluded that the proposed transaction does not create or strengthen a dominant position within the meaning of the Competition Act, 2010 and authorised the transaction under Section 31(1)(d)(i) of the Act. The approval reflects the CCP’s continued commitment to facilitating legitimate corporate restructuring and investment through timely merger reviews while ensuring that market competition, efficiency and consumer welfare remain protected.