Islamabad: The Competition Commission of Pakistan (CCP) has given the green light for the merger of Shamim and Company Ltd. with JK Sugar Mills Pvt. Ltd., a move set to streamline operations and enhance efficiency within the respective sectors of non-alcoholic beverages and sugar production.

According to Competition Commission of Pakistan, the approved Scheme of Arrangement will see Shamim and Company (SCL), a prominent distributor of PepsiCo products since 1967, merge into JK Sugar Mills (JKSM), which specializes in the production and sale of refined white sugar and its by-products. Post-merger, SCL will be dissolved, and JKSM will emerge as the surviving entity, with its current board of directors continuing in their roles.

The merger underwent a Phase-I competition assessment by the CCP, which identified two relevant markets affected by the transaction: ‘Sugar and by-products’ and ‘Non-alcoholic beverages’. The assessment concluded that the merger would not result in a dominance threat in the non-alcoholic beverages market, as SCL’s market share is expected to remain stable.

The CCP highlighted that the merger is anticipated to bring cost-saving benefits through more streamlined procedures and reduced overhead. These changes are expected to increase operational efficiency, benefiting shareholders, employees, and customers alike.