Islamabad: Alfalah Asset Management Limited has received the green light from the Competition Commission of Pakistan (CCP) to acquire management rights of select funds from Faysal Asset Management Limited, marking a significant consolidation in the asset management sector.

According to Competition Commission of Pakistan announcement issued on 23 August 2024, the approval was granted following the formalization of a Transfer of Management Rights Agreement between Alfalah and Faysal Asset Management. Both companies are key players in the financial services industry, operating as asset management and investment advisory firms under the regulation of the Securities and Exchange Commission of Pakistan (SECP).

This acquisition positions Alfalah Asset Management to enhance its offerings in the asset management services market, aligning with its strategic growth objectives. The CCP’s review highlighted that the transaction, while leading to a modest increase in Alfalah’s market share, is not expected to disrupt competitive balance within the industry due to the non-dominant nature of the combined market presence post-acquisition.

The decision underscores CCP’s commitment to fostering a competitive yet stable financial services landscape, ensuring that market consolidations do not impede healthy market dynamics or innovation within the asset management sector.