IN THE MATTER OF ACQUISITION OF % SHAREHOLDING OF WOOT TECH (PRIVATE) LIMITED vs Ss

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IN THE MATTER OF ACQUISITION OF % SHAREHOLDING OF WOOT TECH (PRIVATE) LIMITED VS Ss. 2(1)(e), 11 & 31(1)(d)(i)---Competition (Merger Control) Regulations, 2016, Regln. 6---Pre-merger application jointly submitted by parties i.e. Acquirer (Foreign Company) and Target/Seller (Pakistani Company)---Approval of mergers---Scope---Acquisition of shareholding in the Target (Pakistani Company)---Dominant position of the Acquirer (Foreign Company, determination of---Scope---Competition in the relevant market, lessening of---Effect---Acquirer (Foreign Company) was engaged in cutting edge solutions in artificial intelligence, machine learning, cognitive computing, and intelligent software applications while the Target (Pakistani Company) was engaged in the indigenous design and development of various types of drones and relevant market product which was defined as the market for "Unmanned Aerial Vehicles" (UAVs)---Competition Commission of Pakistan ('the Commission') performed a Phase-I competition assessment of the Application to determine adherence to Competition Act , 2010 and Competition (Merger Control) Regulations, 2016 ('the Regulations, 2016')---Said evaluation particularly emphasized potential competitive issues, such as market dominance and competition following the merger---The transaction was classified as a conglomerate acquisition, as there was no horizontal overlap or vertical integration between the business operations of the Acquirer and the Target---Acquirer (Foreign Company) had no direct presence in Pakistan and did not operate in the UAVs segment---As such, the transaction would not result in any structural change to existing market dynamics---Post-merger, the Target's market share was expected to remain unchanged, as the Acquirer did not have a pre-existing presence in Pakistan---Consequently, the transaction would not result in market dominance, concentration, or elimination of competitive forces---Moreover, no concerns were identified regarding potential price increases, reduction in innovation, or suppression of market access for current or future competitors as a consequence of the transaction---Commission determined that the proposed transaction did not create or strengthen a dominant position, nor did it substantially lessen competition in the relevant market as defined under S. 2(1)(e) read with S. 11 of the Competition Act , 2010 and R. 6 of the Regulations, 2016---Commission authorized proposed transaction under S. 31(1)(d)(i) of the Competition Act , 2010---Merger application was allowed accordingly.

IN THE MATTER OF ACQUISITION OF % SHAREHOLDING OF WOOT TECH (PRIVATE) LIMITED vs Ss — 2025 CLD 1314 COMPETITION COMMISSION OF PAKISTAN

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