CCP approves cross-border asset takeover – Business

ISLAMABAD: The Competition Commission of Pakistan (CCP) has given the green light for a merger in the cross-border money remittance and currency exchange sector.

The CCP official statement said that the approved transaction involves the acquisition of certain assets of Wall Street Exchange Company (Pvt) Ltd (WSE) by UBL Currency Exchange (Pvt) Ltd (UCE) pursuant to a Letter of Intent (LoI) and later through an Asset Purchase Agreement (APA).

UCE, recently incorporated as a Foreign Exchange Company, is a wholly owned subsidiary of United Bank Ltd. WSE, engaged in facilitating money transfers to individuals and corporate entities, commenced operations in December 2003 after obtaining a license from the State Bank of Pakistan.

As part of the proposed transaction, UCE plans to acquire certain assets of WSE, including real estate, employees, commercial contracts and underlying assets ranging from computer equipment to equipment and vehicles.

CCP’s Phase I competitive assessment identified “Foreign Exchange and Money Transfer” as the relevant product market. CCP’s analysis further confirmed that WSE has distinct market shares in these foreign exchange and money transfer markets.

However, market shares will be regained once UCE starts to expand again in the relevant markets.

The transaction is in compliance with the regulatory requirements of the State Bank of Pakistan.

Published in Dawn, July 5, 2024