CCP clears Maple Leaf’s bid for bigger stake in Pioneer Cement

Nilam Bano | December 03, 2025 at 03:32 PM GMT+05:00

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December 03, 2025 (MLN): The Competition Commission of Pakistan (CCP) has authorized the acquisition of additional shareholding in Pioneer Cement Limited by Maple Leaf Cement Factory Limited, ruling that the transaction will not result in a monopoly in the cement sector.

In an order issued on November 27, 2025, CCP Chairman Dr. Kabir Ahmed Sidhu confirmed that the pre-merger application, filed on November 19, 2025, met the necessary legal requirements under the Competition Act, 2010.

Transaction Details:

The transaction involves Maple Leaf Cement Factory Limited purchasing additional shares of Pioneer Cement Limited from the capital market via the Pakistan Stock Exchange.

The shares are being acquired from a consortium of sellers that includes Vision Holdings Middle East Limited, Inship Management Limited, Imperial Developers and Builders (Private) Limited, Sealog (Pvt.) Ltd, Inshipping (Private) Limited, Inservey Pakistan (Pvt.) Ltd, and Forbes Shipping Company (Private) Limited .

Maple Leaf, a subsidiary of Kohinoor Textile Mills Limited, already holds a shareholding in the target company alongside its associated company, Maple Leaf Capital Limited.

Competition Assessment:

In its Phase-I review, the CCP defined the relevant product market as the "Production and Sale of Grey Cement" and the geographic market as "Pakistan"

The Commission classified the acquisition as horizontal in nature because both the Acquirer and the Target operate at the same level of the supply chain and supply the same product

While Maple Leaf operates in both Grey and White Cement markets, Pioneer Cement operates solely in the Grey Cement market

Despite the direct competition between the two companies, the CCP noted that the combined market share of the merged entity would remain moderate following the transaction

The Commission determined that the merged entity would continue to face strong competitive pressure from several established cement producers that individually hold comparable or larger shares of the national market

Consequently, the merged entity would not be in a position to behave independently of market forces

The Commission’s analysis further ruled out significant risks regarding market manipulation. It found that the potential for unilateral effects is limited because multiple sizeable competitors remain in the market, preventing the merged firm from profitably raising prices or restricting output

Additionally, coordinated effects are unlikely to be strengthened as the market already consists of several large independent players

The assessment also confirmed that the transaction involves no vertical elements, thereby eliminating concerns related to input foreclosure or distribution constraints

Concluding its review, the CCP stated that the acquisition is unlikely to result in a substantial lessening of competition and does not create or strengthen a dominant position in the relevant market

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