CCP approves Scheme of Arrangement for IMS-EFG merger

ISLAMABAD   -   The Competition Commission of Pakistan (CCP) has approved a Scheme of Arrangement for the merger of M/s. Intermarket Securities Limited (IMS) with M/s. EFG Hermes Pakistan Limited (EFG). M/s. Intermarket Securities Limited (IMS) is a public unlisted company providing brokerage services in Pakistan, while EFG Hermes Pakistan Limited (EFG) is a registered public listed company focused on offering brokerage services in stocks, along with financial brokerage, corporate finance, and financial research.

The Phase-I competition assessment by the CCP identified ‘Brokerage Services’ as the relevant product market. The assessment further revealed that post-transaction, IMS will dissolve without winding up, and EFG will be the surviving entity. Under the Scheme of Arrangements, the agreed swap ratio for the transaction is 2.16:1, whereby, for every 1 share of IMS, EFG will issue 2.16 shares to the shareholders of IMS. The assessment further confirmed that post-transaction, the merger will lead to a slight increase in EFG’s market share, which will not result in EFG attaining dominance in the brokerage market. The merger signifies a strategic consolidation aimed at enhancing service offerings and market reach, ultimately benefiting clients with improved financial services and research capabilities. Chairman Dr. Kabir Ahmed Sidhu said that this approval underscores the CCP’s commitment to fostering competitive markets while ensuring that mergers and acquisitions do not adversely affect market dynamics and consumer interests.

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