Nimir Chemicals to acquire P&G assets, CCP approves

July 11, 2024 (MLN): The Competition Commission of Pakistan (CCP) has approved a merger in the consumer care market, involving the acquisition of certain assets of Procter & Gamble Pakistan (Pvt.) Ltd. (P&G) by Nimir Industrial Chemicals Ltd. (PSX: NICL) pursuant to an Asset Purchase Agreement (APA).

P&G is a company incorporated in Pakistan with extensive business footprint in production and sale of various household products including manufacturing of its own brand of toilet soap i.e. Safeguard.

Nimir is a public listed company established in 1964 and has a diverse product portfolio along with toll manufacturing of aerosol, soap products, home and personal care products.

In view of the terms set out in APA, Nimir intends to acquire certain assets of P&G relating to its manufacturing facility of toilet soap, ‘Safeguard’, and its real estate property located in Hub, Balochistan.

The relevant product market as identified in CCP’s Phase I competition assessment is ‘Personal Care – Hard Soap’.

The assessment also confirmed that the proposed transaction will not result in dominance of Nimir in the relevant market, post-transaction, given its small share.

With this approval, CCP expects improved operations with Nimir’s state-of-the-art manufacturing facilities that comply with international standards and quality assurance, thus, contributing towards developing innovative industrial chemical solutions as well as national economic prosperity.

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