CCP approves merger in consumer electronics sector

KARACHI: The Competition Commission of Pakistan (CCP) has given the green light for the merger between DWP Engineering Industries (Private) Limited and Digital World Pakistan (Private) Limited. This approval comes following the CCP’s Phase I competition assessment under the Scheme of Arrangement.

DWP Engineering Industries and Digital World Pakistan operate in the consumer electronics and home appliances sector. The CCP’s review focused on the potential impact of the merger within the relevant product market, which includes consumer electronics and home appliances, and the geographic market of Pakistan.

According to the CCP, the merger will lead to the dissolution of DWP Engineering Industries, with Digital World Pakistan expected to see a modest increase in its market share. Despite this consolidation, the CCP has determined that the merger will not result in Digital World achieving a dominant position as defined by Section 2(1)(e) of the Competition Act.

The merger is anticipated to bring several benefits, including enhanced operational efficiencies and an expanded range of products. As consumer demand for electronics and home appliances continues to rise, the strengthened position of Digital World is expected to promote increased competition in the sector. This could lead to improved innovation, better pricing, and higher quality products for consumers.

The merger aligns with Pakistan’s broader economic objectives by fostering investment in the manufacturing sector, boosting local production, and supporting job creation. This consolidation is seen as a positive step towards driving economic growth in a crucial industry.