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Islamabad, May 4, 2026: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of shares in Rafhan Maize Products Company Limited by a consortium linked to the Nishat Group, following an initial review under the Competition Act, 2010.
Under the transaction, shares of Rafhan Maize Products will be acquired from a foreign company and other individual shareholders. The acquiring consortium includes Nishat Hotels and Properties Limited, DG Khan Cement Company Limited, Nishat Mills Limited, Lalpir Power Limited, Pakgen Power Limited, Nishat Power Limited, Nishat Chunian Power Limited, along with other associated persons.
The CCP conducted a detailed assessment of the potential impact of the transaction on competition in relevant markets. Rafhan Maize Products operates in the production of corn-based products including starch, liquid glucose, dextrose, dextrin, and gluten meals, while Nishat Mills Limited is engaged in textile manufacturing, where starch is used as an input material.
During its review, the Commission examined the vertical relationship between upstream and downstream markets. It concluded that the transaction is unlikely to substantially lessen competition. Although Rafhan holds a strong position in the upstream market, the presence of alternative domestic suppliers and imported substitutes is expected to limit any potential anti-competitive behavior. Moreover, starch constitutes a relatively small portion of overall production costs in the textile sector, further reducing any competitive concerns.
The Commission also noted that Rafhan neither has the capacity nor the incentive to restrict supply in a way that could influence market dynamics, given the availability of excess production capacity and competing suppliers. Similarly, downstream buyers do not possess sufficient market power to distort competition.
In light of these factors, the CCP concluded that the transaction will not create or strengthen a dominant position in the relevant market and does not raise competition concerns. The acquisition was therefore approved.
The decision reflects the regulator’s commitment to facilitating investment and business activity while ensuring the preservation of healthy market competition.
