Lotte Group wins CCP approval for internal restructuring

July 13, 2026 (MLN): The Competition Commission of Pakistan (CCP) has approved an internal restructuring within South Korea's Lotte Group after determining that the transaction poses no competition concerns in Pakistan's food and beverage sector.

The approval relates to Japan-based Lotte Co., Ltd.'s acquisition of shares in Singapore-based Lotte Confectionery (S.E.A.) Pte. Ltd. from LotteWellfood Co., Ltd.

Since the Singapore entity holds stakes in LotteKolson and Lotte Akhtar Beverages in Pakistan, the transaction required prior clearance under the Competition Act, 2010.

Following a Phase-I review, the Commission concluded that the transaction represents an intra-group transfer of ownership and will not affect the competitive landscape in Pakistan, according to APP.

It observed that the acquiring company has no confectionery or food business operations in the country, eliminating the possibility of increased market concentration or the creation of a dominant position.

During its assessment, the CCP examined the markets for pasta, chewing gum, savoury snacks, sweet biscuits, cakes, and beverages, considering Pakistan as the relevant geographic market.

The review found that the ownership change would not affect the market shares of LotteKolson or Lotte Akhtar Beverages, nor would it have any negative impact on competition.

Based on its findings, the Commission approved the transaction under Section 31(1)(d)(i) of the Competition Act, 2010, concluding that it would not substantially lessen competition in any relevant market.

The CCP stated that the decision highlights its role in facilitating investment and corporate restructuring by providing timely regulatory approvals for transactions that do not raise competition concerns, while maintaining effective oversight of competitive markets.

Copyright Mettis Link News