CCP approves pre-Merger of NLC, DP World Logistics

March 16, 2025 (MLN): The Competition Commission of Pakistan (CCP) has approved the pre-merger application for the establishment of a joint venture between National Logistics Corporation (NLC) and DP World Logistics FZE (DWLF).

This investment, facilitated by the Special Investment Facilitation Council (SIFC), aims to enhance Pakistan’s logistics and freight industry while ensuring fair competition in the market.

Under the terms of the transaction, NLC will acquire a 60% equity stake in the joint venture, while DWLF will hold the remaining 40%.

The collaboration is expected to strengthen Pakistan’s road freight logistics sector by combining NLC’s domestic expertise with DP World’s global supply chain solutions.

The relevant market for this transaction has been identified as ‘road freight logistics,’ a crucial segment in Pakistan’s trade and transport sector, according to the press release.

Following a comprehensive competition assessment, CCP determined that the transaction would not lead to a substantial lessening of competition or the creation of a dominant market position.

The review also considered horizontal overlaps in road freight logistics and potential vertical integration effects.

CCP’s findings concluded that the market remains competitive, with multiple players ensuring continued competition.

The joint venture underscores Pakistan’s growing attractiveness for foreign investment in the logistics sector.

It is anticipated to improve infrastructure, lower transport costs, and boost Pakistan’s trade competitiveness within the region.

In the previous year, CCP facilitated transactions that attracted $29.6 billion in investments from leading global companies across Pakistan’s energy, finance, telecom, and agriculture sectors.

This latest approval marks another significant transaction, paving the way for substantial investment in road freight and contributing to the modernization of Pakistan’s logistics industry.

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