Islamabad, Dec 13: The purchase of JK Sugar Mills (Private) Limited’s assets by Naubahar Bottling Company (Private) Limited through an Asset Purchase Arrangement (APA) has been authorized by the Competition Commission of Pakistan (CCP).
JK Sugar Mills is a privately held business that was legally established in Pakistan. In addition to owning a Pepsi beverage franchise in Pakistan, its main business is the manufacture and sale of white crystalline sugar.
The buyer, Naubahar Bottling Company, is a privately held business that has been legally incorporated in Pakistan. Producing drinks including Pepsi, Mountain Dew, 7up, Mirinda, Sting, Slice Mango, Aquafina, and Gatorade is its line of work.
“Beverages – Non-alcoholic ready to drink” was determined to be the relevant market by the CCP’s Phase-I competition assessment. JK Sugar Mills will leave the market after the deal is completed, and the Naubahar Bottling Company’s estimated market share would increase somewhat. The purchase has been allowed by the CCP since it does not result in the acquirer becoming the dominant player in the relevant market.
According to SECP, the acquisition highlights the possibility of operational efficiency resulting in the fast-moving consumer goods (FMCG) industry’s notable expansion.
