Although there is no distinction between the local or global turnover of a company to a merger transaction, in light of the purpose and policy objectives of Pakistan’s merger regime, specifically, prohibiting mergers that would substantially lessen competition, only the turnover in Pakistan would be relevant for determining the relative strength of the merged entity’s position in the Pakistan market. However, one caveat is the language of section 4(2) of Competition (Merger Control) Regulations, 2016, specifically the words “may not be required to make application for clearance from the Commission”. This language is permissive but not affirmative and categorical and could be interpreted by the Competition Commission of Pakistan (CCP) and/or subsequently by a court as vesting discretion with the CCP to decide whether or not any of the threshold requirements are triggered.
