CCP Authorizes Maple L. Faysal Bank*
The Competition Commission of Pakistan (CCP) has authorized the acquisition of shares of Faysal Bank Limited by Maple Leaf Cement Factory Limited (MLCF) following a review under the Competition Act, 2010.
The transaction involves the purchase of shares of Faysal Bank by Maple Leaf Cement through open market transactions on the Pakistan Stock Exchange (PSX).
The acquisitions were carried out through a series of share purchases during 2025 and form part of Maple Leaf Cement’s investment in the banking sector.In one of the cases, the Commission reviewed a transaction involving the acquisition of shares of Faysal Bank that had already been completed prior to obtaining the Commission’s approval. The Commission examined the matter and subsequently granted ex-post facto authorization after assessing that the transaction does not raise any competition concerns.
The acquirer was directed to ensure strict compliance with the pre-merger approval requirements under the Competition Act and the Competition (Merger Control) Regulations, 2016 for future transactions.In a related transaction, the Commission also approved Maple Leaf Cement’s proposed acquisition of additional shares in Faysal Bank, which will increase the company’s overall shareholding in the bank.
The CCP conducted Phase-I competition assessments in both matters to evaluate the potential impact of the transactions on competition in Pakistan. For the purposes of the review, the relevant market was identified as commercial banking in Pakistan.The Commission observed that Maple Leaf Cement operates in the cement manufacturing sector, while Faysal Bank operates in the banking sector, and therefore the business activities of the two entities are entirely distinct and unrelated.
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The Commission concluded that the transactions do not involve any horizontal or vertical overlap between the merger parties and are unlikely to create or strengthen a dominant position or substantially lessen competition in the relevant market. Accordingly, the Commission authorized both transactions under Section 31(1)(d)(i) of the Competition Act, 2010.Such investments in the financial sector support capital formation and strengthen investor participation in Pakistan’s banking industry. The CCP remains committed to facilitating investments that promote efficient markets while ensuring that mergers and acquisitions do not harm competitive dynamics.