CCP approves 100pc acquisition in insurance sector

ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval to a merger in the Health Insurance and Health Takaful sector.

The approved transaction involves acquisition of 100pc shareholding of M/s EFU Health Insurance Limited by M/s EFU Life Assurance.

The acquirer, EFU Life Assurance, is a public listed company. It is engaged in life insurance business including ordinary life business and pension fund business. Whereas, EFU Health Insurance Limited is an unlisted public limited company. Its principal activities include selling health insurance and health takaful cover in Pakistan.

EFU Life Assurance is acquiring 100pc shareholding of EFU Health from M/s EFU Services (Private) Limited and six other shareholders. EFU Life will be issuing its own ordinary shares at a swap ratio to the current shareholders of EFU Health.

Following the Phase 1 Review, the CCP determined the proposed transaction would not lead to the acquirer attaining dominance in the relevant market after completion of transaction.