Islamabad:
The Pakistan Competition Committee (CCP) approved the pre-fusion request for the creation of a joint venture between the National Logistics Corporation (NLC) and the DP World Logistics Fze (DWLF).
The investment, facilitated by the Special Investment Facilitation Council (SIFC), aims to improve the Pakistan logistics and freight industry while ensuring fair competition on the market, said a press release published here on Sunday.
The transaction implies that NLC acquires a 60% stake in the joint venture, DWLF holding the remaining 40%.
The company aims to improve the Pakistan road freight logistics sector by taking advantage of the NLC domestic expertise and the global solutions of the DP global supply chain.
The relevant transaction market has been identified as a “road freight logistics”, a key segment of the commercial sector and transport in Pakistan.
Following a detailed assessment of competition, the CCP determined that the transaction does not lead to a substantial decrease in competition or the creation of a dominant market position.
The review also examined the horizontal overlapping of road freight logistics and potential effects of vertical integration.
The PCC analysis concluded that the market remains competitive, several players guaranteeing continuous competition.
The joint venture highlights the growing attraction of Pakistan for foreign investment in logistics.
It should improve infrastructure, reduce transport costs and stimulate Pakistan’s commercial competitiveness in the region.
