CCP approves ICPL, NPL's 90.61% stake acquisition in Searle Pakistan

January 16, 2025 (MLN): The Competition Commission of Pakistan (CCP) has granted approval for Ijara Capital Partners Limited (ICPL) and Noventa Pharma (Private) Limited (NPL) to acquire a combined 90.61% stake in Searle Pakistan Limited (SPL).

This approval marks a significant development in the pharmaceutical sector, as per the press release issued today. 

The CCP conducted a thorough competition assessment, defining the relevant product market as "pharmaceutical products."

This market was further categorized into therapeutic classes, such as cardiovascular drugs and antibiotics, as well as segmented into branded and generic pharmaceuticals.

The assessment concluded that SPL's relatively modest market share suggests the transaction would not result in a dominant market position for the acquirers.

Additionally, as the transaction is of a conglomerate nature, no substantial vertical integration concerns were identified.

The pharmaceutical sector in Pakistan functions within a regulated framework, marked by moderate entry barriers, including rigorous regulatory approvals and significant capital requirements.

CCP’s evaluation concluded that the transaction is unlikely to heighten these barriers or adversely impact consumers.

SPL, a public unlisted company incorporated under the laws of Pakistan, specializes in the import, manufacture and sale of pharmaceutical products.

ICPL, also a public unlisted company, is engaged in private equity and venture capital fund management services.

NPL is a private limited company established as a Special Purpose Vehicle.

The approval underscores CCP’s commitment to fostering competitive market dynamics while ensuring transactions align with the Competition Act, 2010, and the Competition (Merger Control) Regulations 2016.

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