The Competition Commission of Pakistan (CCP) has given the green light to the acquisition of Coca-Cola (Pakistan) under the phase-1 review of the Competition Act, 2010, and the Competition (Merger Control) Regulations, 2016.
In a significant move, Coca-Cola Içecek (Turkey) has acquired 49.67 percent shareholding of Coca-Cola (Pakistan) through its subsidiary, CCI International Holland, from Atlantic Industries, marking a transaction valued at US$300 million.
With this acquisition, Coca-Cola Turkey will become the majority shareholder in Coca-Cola (Pakistan) and will assume management control. This development is a strong indication of the burgeoning potential of the Pakistani economy to deliver promising returns on investment for international investors.
The CCP received a pre-merger application from the acquirer, CCI International Holland, and the seller, Atlantic Industries. The acquirer, a private limited company, is a wholly owned subsidiary of Coca-Cola Içecek AS, operating under the laws of Türkiye. The Ultimate Acquirer holds 49.67% shareholding of the Target and exercises management control.
The Target, an unlisted public limited company incorporated in Pakistan, is actively involved in the production, selling, trading, and distribution of carbonated and non-carbonated beverages, with the well-known Coca-Cola trademark.
The CCP meticulously examined the application, along with all relevant documents and information provided by the concerned undertakings. The Phase I competition assessment of the intended transaction revealed several crucial aspects.
Chairman and Mergers team of the CCP have streamlined the merger system and process to expedite mergers and acquisition applications, a move aimed at facilitating international investors seeking opportunities in the dynamic Pakistani market.
