CCP Approves CDC Investment in NCMCL Under Competition Act Review

Approves CDC’s Investment in NCMCL

The (CCP) has approved the proposed investment by Central Depository Company of Pakistan Limited (CDC) in Naymat Collateral Management Company Limited (NCMCL). This approval was granted following a Phase-I review under the Competition Act, 2010.

CDC submitted a pre-merger application to the CCP seeking approval for additional shares in NCMCL. The Commission’s competition assessment concluded that the transaction would not significantly alter competition dynamics as CDC and NCMCL operate in separate business segments.

Founded in 1993, CDC is one of Pakistan’s key capital market institutions providing electronic custody services. Established in 2020, NCMCL operates as a collateral management company overseeing warehouses under Pakistan’s Electronic Warehouse Receipt framework.

The CCP concluded that the acquisition neither constitutes horizontal nor vertical integration, reducing concerns about anti-competitive effects such as market foreclosure or collusion. The Commission also noted that the transaction would not create entry barriers or substantially lessen competition in the relevant market.