CCP okays cross-border assets’ acquisition

ISLAMABAD: The Competition Commission of Pakistan (CCP) has green-lighted a merger within the cross-border remittances and currency exchange business.

An official announcement of the CCP said the approved transaction entails 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 asset purchase arrangement (APA).

UCE, recently incorporated as a currency exchange company, is a wholly-owned subsidiary of United Bank Ltd. WSE, involved in remittance-related facilitation to individuals and corporate entities, started its operations in December 2003 after getting a licence from the State Bank of Pakistan.

Under the proposed transaction, UCE plans to acquire certain WSE assets, including immovable properties, employees, commercial agreements, and essential assets ranging from computer hardware to equipment and vehicles.

The CCP’s Phase I competition assessment identified ‘Currency Exchange and Money Transfer’ as the relevant product market. The CCP’s analysis further confirmed that WSE has distinct market shares in these currency exchange and money transfer markets.

How­ever, these market shares will be renewed as UCE takes a fresh start in the relevant markets.

The transaction aligns with the State Bank of Pakistan’s regulatory man­date.

Published in Dawn, July 5th, 2024