CCP Approves Sugar Mill Takeover By Local Agri, Pharma Companies

The Competition Commission of Pakistan has approved the acquisition of majority shareholding in Ranipur Sugar Mills Private Limited by Saakh Pharma Limited and United Ethanol Industries Limited under a Phase I review.

The target company operates in sugar manufacturing, along with byproducts and power generation through its in-house facility.

Saakh Pharma is a listed company engaged in pharmaceutical and biological products, while United Ethanol Industries operates in ethanol and industrial products within the agribusiness sector.

During the review, the Commission noted that the transaction had already been completed before obtaining regulatory approval. It emphasized that pre-merger approval is a mandatory legal requirement for such transactions and must be secured before execution. The acquiring parties have submitted an undertaking to ensure compliance in future.

From a competition standpoint, the Commission categorized the deal as a conglomerate merger, with no meaningful overlap in core business activities and only limited vertical integration between the entities.

The Commission observed that Ranipur Sugar Mills has a relatively limited market presence and that the transaction does not create supply dependencies or raise competition concerns.

Based on its assessment, the CCP concluded that the acquisition is unlikely to create or strengthen a dominant market position or significantly reduce competition. The transaction was therefore approved under applicable competition laws.