DP World Logistics: CCP Approves 60pc Acquisition by NLC
Deal News | Mar 16, 2025 | EIN
The Competition Commission of Pakistan (CCP) has sanctioned the acquisition of a 60% stake in DP World Logistics FZE by the National Logistics Corporation (NLC). This acquisition follows concerted efforts by the Special Investment Facilitation Council (SIFC) of Pakistan to bolster the nation's economic growth. Founded in 1978, NLC operates under the National Logistics Corporation Act 2023 and is a pivotal player in Pakistan's logistics, infrastructure, and transportation sectors. The relevant market for the transaction has been identified as Road Freight Logistics, constrained geographically to Pakistan, where NLC predominantly operates and where the joint venture is also expected to focus its logistic activities. CCP's analysis concluded that the merger would not negatively impact competition or lead to the creation of a dominant market position, permitting the transaction under specific sections of the Competition Act, 2010.
Sectors
- Logistics and Transportation
- Regulatory and Government
Geography
- Pakistan – The transaction and operations involved are primarily focused within Pakistan, where NLC operates and where the joint venture will carry out its activities.
Industry
- Logistics and Transportation – The transaction involves the logistics and transportation sector as NLC is acquiring a significant stake in DP World Logistics FZE, and both entities are focused on freight and logistics operations.
- Regulatory and Government – The article discusses regulatory approval by the Competition Commission of Pakistan (CCP), highlighting the role of government oversight in corporate mergers and acquisitions.
Financials
- 60% – The percentage of shareholding in DP World Logistics FZE acquired by NLC.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| National Logistics Corporation (NLC) | Bidding Company | Company | A state-owned entity under the laws of Pakistan, involved in logistics, infrastructure, and transportation services. |
| DP World Logistics FZE | Target Company | Company | The logistics company whose 60% shareholding is being acquired by NLC. |
| Competition Commission of Pakistan (CCP) | Regulatory Authority | Government | The governmental body responsible for approving the acquisition under competition laws. |
| Special Investment Facilitation Council (SIFC) | Facilitator | Government | A council that works to invigorate economic growth in Pakistan and facilitated the Share Purchase Agreement. |