The Competition Commission of Pakistan (CCP) has approved a pre-merger application paving the way for an internal restructuring within South Korea’s Lotte Group, concluding that the transaction raises no competition concerns in Pakistan’s food and beverage markets.
CCP Approves Internal Lotte Group Restructuring
The transaction involves Japan’s Lotte Co., Ltd. acquiring shareholding in Singapore-based Lotte Confectionery (S.E.A.) Pte. Ltd. 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 approval from the Competition Commission of Pakistan (CCP) under the Competition Act, 2010.
Phase-I Review Finds No Competition Concerns
Following a Phase-I competition assessment, the Commission concluded that the transaction is purely an internal change in ownership within the Lotte Group and will not alter the market structure or competitive dynamics in Pakistan.
The CCP noted that the acquiring company does not conduct confectionery or food business in Pakistan. As a result, the transaction will neither increase market concentration nor create or strengthen a dominant position in any relevant product market.
Pakistan Food and Beverage Markets Remain Unaffected
The Commission assessed competition across the markets for pasta, gum, savoury snacks, sweet biscuits, cakes, and beverages, identifying Pakistan as the relevant geographic market.
The review found that the market shares of Lotte Kolson and Lotte Akhtar Beverages will remain unchanged following the transaction, with no adverse impact on competition in the country’s food and beverage sector.
Acquisition Approved Under Competition Act
Accordingly, the CCP authorised the acquisition under Section 31(1)(d)(i) of the Competition Act, 2010, concluding that the transaction would not result in a substantial lessening of competition.
Decision Supports Investment and Ease of Doing Business
The Commission stated that the approval reflects its commitment to facilitating investment, corporate restructuring, and business expansion through an efficient merger review process. By providing timely regulatory certainty for transactions that do not raise competition concerns, the CCP aims to support ease of doing business while continuing to safeguard competitive markets in Pakistan.