Islamabad: The Competition Commission of Pakistan (CCP) has approved a significant transaction in the currency exchange sector, allowing UBL Currency Exchange (UCE) to acquire specific assets of Wall Street Exchange Company (WSE). This decision marks a pivotal development in the cross-border remittances and currency exchange business.
According to Competition Commission of Pakistan, the approved acquisition involves immovable properties, employees, commercial agreements, and essential operational assets ranging from computer hardware to vehicles. UCE, a wholly owned subsidiary of United Bank Limited and a newcomer in the currency exchange market, is set to absorb these assets under the terms of a Letter of Intent and subsequent Asset Purchase Arrangement.
The CCP’s Phase I competition assessment highlighted ‘Currency Exchange and Money Transfer’ as the relevant product market. The analysis confirmed that WSE, operational since December 2003 with a license from the State Bank of Pakistan, holds distinct market shares in these sectors. However, these shares are expected to undergo adjustments as UCE embarks on its operations in these markets.
The transaction aligns with directives from the State Bank of Pakistan, which aims to regulate the currency exchange sector and stabilize exchange rates. This move by the CCP is intended to ensure a balanced approach to market competitiveness and integrity, fostering improved access to financial services for both foreign and local remittances, addressing the legitimate currency exchange needs of the public.