Millat Tractors-Millat Equipment merger approved by CCP

November 28, 2024 (MLN): The Competition Commission of Pakistan (CCP) has granted approval for the merger of Millat Equipment Limited (MEL) with Millat Tractors Limited (PSX: MTL) under a Scheme of Arrangement sanctioned by the Lahore High Court. Upon the court's sanction, MEL will be dissolved, and MTL will emerge as the surviving entity.

Millat Tractors Limited, a publicly listed company in Pakistan, specializes in the manufacturing and marketing of agricultural tractors (Massey Ferguson 300 series), forklift trucks, diesel engines, diesel generator sets and a wide range of allied agricultural and industrial implements.

Millat Equipment Limited, a public limited company, focuses on manufacturing gears, shafts, hydraulic pumps, and engine balancers exclusively for Massey Ferguson 300 series tractors assembled by MTL.

The CCP’s merger assessment has identified ‘Tractor Parts’ as the relevant product market within the geographical boundaries of Pakistan.

Given MEL’s exclusive engagement in supplying parts for Massey Ferguson 300 series tractors, the merger will not alter the market share of the involved entities.

Furthermore, the transaction will neither create nor strengthen a dominant position in the relevant market, ensuring that competition remains unaffected.

This approval highlights the CCP’s commitment to foster streamlined manufacturing processes and enhanced product quality.

The merger is expected to increase MTL’s asset base, enabling it to capitalize on economies of scale, optimize operational efficiencies and strengthen its competitive position within the industry.

The CCP’s decision underscores its role in facilitating business growth while maintaining a level playing field in Pakistan’s competitive landscape.

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