CCP Approves Alfalah Asset Management’s Acquisition of Faysal Asset Management’s Fund Management Rights

The Competition Commission of Pakistan (CCP) has approved Alfalah Asset Management Limited’s acquisition of management rights for certain funds currently managed by Faysal Asset Management Limited. This approval follows a Transfer of Management Rights Agreement executed between the two asset management companies.

Overview of Alfalah Asset Management Limited

Alfalah Asset Management Limited is a leading public unlisted company that operates as both an Asset Management Company (AMC) and an investment advisor. The Securities and Exchange Commission of Pakistan (SECP) licenses the company under the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003, positioning it well in the asset management industry. Faysal Asset Management Limited also functions as an AMC and investment advisor under the same regulatory framework.

Agreement Details

According to the agreement, Alfalah Asset Management Limited will acquire management rights for specific funds currently managed by Faysal Asset Management Limited. This transfer will slightly increase Alfalah Asset Management’s market share, while Faysal Asset Management’s market share will see a corresponding decrease.

CCP’s Evaluation and Approval

The CCP conducted a comprehensive evaluation of the transaction and identified the relevant product market as “Asset Management Services.” Because the transaction is horizontal and the two companies have overlapping operations, the CCP concluded that the acquisition would not allow Alfalah Asset Management to gain a dominant position in the market.

Impact on the Financial Sector

The CCP’s approval underscores its commitment to maintaining a competitive environment in the financial services sector. By approving this transaction, the CCP ensures that the asset management industry continues to grow sustainably, fostering innovation while maintaining healthy competition.

This transfer is anticipated to strengthen Alfalah Asset Management’s market position, although it will result in only a slight increase in market share, which will help maintain robust competition within the industry.