Overview
- The Competition Commission of Pakistan approved a Nishat Group–led consortium's acquisition of Rafhan Maize after a Phase-I review under Section 11 of the Competition Act, 2010.
- The deal involves buying shares from US-based Ingredion, the majority seller, along with other individual shareholders.
- Officials found a vertical link between Rafhan Maize, which makes corn-based ingredients like starch and glucose, and Nishat Mills, which uses starch in textile production, but saw no threat to competition.
- The commission cited alternative local suppliers, available imports, and spare production capacity as reasons Rafhan would lack both the ability and the incentive to restrict supplies or raise rivals’ costs.
- Business Recorder reported that the agreements could transfer a controlling stake of up to 75.10 percent in a company valued at about Rs 100 billion, with closing still subject to customary conditions and formalities.