Competition Commission of Pakistan approves IMS-EFG merger plan

The Competition Commission of Pakistan (CCP) has granted approval for the merger plan between Intermarket Securities Limited (IMS) and EFG Hermes Pakistan Limited (EFG). IMS, a company specializing in brokerage services, and EFG, a registered publicly listed company offering brokerage services, corporate finance, and financial research, are set to join forces.

The approval from CCP underscores the commission's commitment to fostering competitive markets and protecting consumer interests in merger transactions. In the initial competition assessment, CCP identified 'Brokerage Services' as the relevant product market and determined that IMS will merge into EFG, with EFG emerging as the surviving entity.

Under the approved scheme of arrangement, the swap ratio for the merger has been fixed at 2.16:1. This means that for every share of IMS, EFG will issue 2.16 shares to IMS shareholders. The assessment also noted that while the merger will slightly increase EFG's market share, it will not result in EFG dominating the brokerage market.

This strategic merger is aimed at enhancing service offerings and expanding market reach. The consolidation is expected to bring about improved financial services and research capabilities for clients, ultimately benefiting the stakeholders involved.

The approval of the merger between Intermarket Securities and EFG Hermes Pakistan by the Competition Commission of Pakistan signifies a significant step towards strengthening the financial services sector in the country. The merger is poised to create synergies that will enhance the overall market competitiveness and offer enhanced services to clients, marking a positive development in the financial landscape of Pakistan.