Islamabad, Aug 5: A merger in the real estate industry has been allowed by the Competition Commission of Pakistan (CCP). Under the terms of the Share Purchase Agreement, Enaara Properties Rawalpindi Ltd would purchase all of the shares of Sprint Services Rawalpindi Ltd.
A publicly traded, unlisted organization, Sprint Services Rawalpindi is involved in the development of commercial real estate. It is the owner of a retail center in a desirable area in Rawalpindi. Two people and a private limited company called FYC (Pvt) Ltd are among its principal shareholders.
On the other hand, Enaara Properties is a holding company that was founded especially to carry out this transaction and engage in real estate-related activities. The relevant product market was determined to be “Real Estate” by the CCP in its Phase I competition evaluation. According to CCP’s analysis, the merger would neither create a dominating position nor change the dynamics of the market, protecting the level of competition in the industry.
In order to stop anti-competitive behavior and maintain fair competition, mergers must be evaluated by the CCP in accordance with the Competition Act of 2010, with the CCP’s clearance, the merger can be considered as non-threatening to the competitive market conditions. The CCP hopes to uphold competition legislation by allowing this merger and possibly promote stability and growth in Pakistan’s real estate industry.
