ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of a shareholding in Rafhan Maize Products Company Ltd by a consortium of acquirers comprising entities of the Nishat Group and associated individuals.

The transaction invo­lves the acquisition of shares in Rafhan Maize Pro­ducts Company Ltd from Ingredion Incor­porated (the majority seller) and other individual shareholders.

The acquiring entities include Nishat Hotels and Properties Ltd, D.G. Khan Cement Company Ltd, Nishat Mills Ltd, Lalpir Power Ltd, Pakgen Power Ltd, Nishat Power Ltd, Nishat Chunian Power Ltd, and associated individuals.

The commission assessed the transaction in light of its potential impact on competition in the relevant markets. Rafhan Maize operates in the upstream market for maize-derived products such as starch, liquid glucose, dextrose, dextrin, and gluten meals, while one of the acquiring entities, Nishat Mills Ltd, operates downstream in textile production, where starch is used as an input.

The assessment identified a vertical overlap between the upstream and downstream markets. However, the commission concluded that the transaction is unlikely to substantially lessen competition. The analysis highlighted that, despite Rafhan’s significant position in the upstream market, alternative domestic suppliers and the availability of imports would constrain any potential anti-competitive conduct.

Additionally, starch accounts for a relatively small share of input costs in downstream textile production, further limiting any foreclosure risks.

The commission also noted that Rafhan lacks both the ability and the incentive to engage in input foreclosure, given the availability of spare production capacity in the upstream market and competitive pressures from other suppliers. On the downstream side, the acquiring entity lacks sufficient market power to distort competition.

Published in Dawn, May 5th, 2026