March 22, 2024 (MLN): The Competition Commission of Pakistan (CCP) has approved the merger of TPL Life Insurance Limited with Dar Es Salam Textile Mills Limited (PSX: DSML).
The approval comes following the parties' agreement into a Scheme of Arrangement under the Companies Act, 2017.
This cross-sectoral merger is a positive development for the Pakistani insurance industry, showcasing growth and consolidation.
TPL Life Insurance Limited offers a range of services in life insurance, reinsurance, counter-reinsurance, and various guarantee and indemnity businesses.
They offer products that include insurance related to endowment, pension funds, and transit, among others.
Dar Es Salam Textile Mills Limited, incorporated as a public unlisted company in 1989, initially focused on manufacturing and selling yarn.
However, the company ceased its textile operations in 2014 and has since been engaged in general trading activities.
CCP's thorough analysis determined that the proposed merger would not lead to dominance in the relevant market, as defined under the Competition Act, 2010, post-transaction. As a result, the merger earned swift approval from the Commission.
This approval reflects CCP's commitment to ensuring healthy competition in the market while facilitating business growth and innovation.
