Pakistan: CCP approves acquisition of Shamim and Co by JK Sugar Mills
Islamabad: The Competition Commission of Pakistan has approved the amalgamation of Shamim & Co. Pvt. Ltd. into M/s JK Sugar Mills (Pvt.) Ltd., led by Jahangir Khan Tareen. JKSM, known for producing refined white sugar and its by-products, will absorb SCL, a firm involved in PepsiCo’s bottling and distribution since 1967. Post-merger, JKSM will dissolve SCL but maintain its non-dominant position in the ‘Non-alcoholic beverages’ market segment. The merger aims to streamline operations, reduce costs, and enhance administrative efficiency for stakeholders.
Islamabad: The Competitive Commission of Pakistan has accorded approval for the scheme of arrangement for the amalgamation of Shamim & Co. Pvt. Ltd. into and with M/s JK Sugar Mills (Pvt.) Ltd.
JKSM is a private company limited by shares and is engaged primarily in the manufacturing and sale of sugar and allied products in Pakistan. The company’s main product is refined white sugar, and its by-products are molasses, bagasse, and mud. It falls under the leadership of businessman-turned-politician Jahangir Khan Tareen.
Since 1967, SCL has engaged in both the production of and supply chain for PepsiCo products across Pakistan. This firm, headquartered in Multan, is involved in bottling and distribution for the global beverage giant.
The relevant markets identified by the Phase-I order of the CCP related to the merger were two: ‘Sugar and by-products’ and ‘Non-alcoholic beverages.’ As per the Scheme of Arrangement, SCL shall be dissolved after the merger and JKSM will be the surviving entity. The Board of Directors of JKSM shall continue as the directors of the surviving entity after the merger.
It has been evaluated and ascertained that even after the merger there shall be no change in the market share of ‘Non-alcoholic beverages’ of SCL, hence JKSM shall not be dominant in the market segment of this product.
The merger will bring about cost savings to JKSM by avoiding and streamlining procedures and decreasing overhead and working expenses. The resultant additional efficiency due to unified control is bound to administrative excellence to the benefit of its shareholders, employees, customers, and other stakeholders.
Source Link : https://www.chinimandi.com/pakistan-ccp-approves-acquisition-of-shamim-and-co-by-jk-sugar-mills/
