CCP Greenlights Currency Exchange Merger

The Competition Commission of Pakistan (CCP) has approved a significant merger in the cross-border remittances and currency exchange sector. The transaction involves M/s UBL Currency Exchange (Pvt.) Ltd (UCE) acquiring certain assets from M/s Wall Street Exchange Company (Pvt.) Ltd (WSE).

The merger will proceed following a Letter of Intent (LOI) and an Asset Purchase Arrangement (APA). UCE, a wholly-owned subsidiary of United Bank Limited, was recently incorporated as a currency exchange company. WSE, which began operations in December 2003 under a license from the State Bank of Pakistan, specializes in remittance services for individuals and corporate entities.

Under the proposed transaction, UCE will acquire WSE’s immovable properties, employees, commercial agreements, and essential assets including computer hardware, equipment, and vehicles.

CCP’s competition assessment identified ‘Currency Exchange and Money Transfer’ as the relevant market. Despite WSE’s significant market shares in these sectors, CCP’s analysis determined that UCE will be entering the market afresh, effectively resetting these shares.

This merger aligns with the regulatory mandate from the State Bank of Pakistan, which aims to regulate the currency exchange sector, stabilize exchange rates, and ensure market competitiveness and integrity. With CCP’s approval, there is an expectation of improved access to financial services for foreign and local remittances, meeting the legitimate currency exchange needs of the public.