Competition Commission of Pakistan Approves Merger in Currency Exchange Sector

The Competition Commission of Pakistan (CCP) has recently granted approval for a significant merger in the cross-border remittances and currency exchange sector. The merger involves the acquisition of specific assets of M/s Wall Street Exchange Company (Pvt.) Ltd (WSE) by M/s UBL Currency Exchange (Pvt.) Ltd (UCE), a subsidiary of United Bank Limited.

WSE, established in 2003 with a focus on facilitating remittances, will see its assets acquired by UCE, a newly formed Pakistani private limited company specializing in currency exchange. The acquisition will include real estate properties, employees, commercial contracts, and essential assets like computer hardware and vehicles.

The Competition Commission's assessment identified 'Currency Exchange and Money Transfer' as the relevant product market, with WSE holding significant market shares. The entry of UCE is expected to reset these market dynamics, promoting competition and market integrity.

This merger aligns with the regulatory directives of the State Bank of Pakistan, aiming to oversee the currency exchange industry, ensure exchange rate stability, and enhance market competitiveness. The approval from CCP is anticipated to improve access to financial services for both foreign and local remittances, meeting the public's legitimate currency exchange needs.

The approved merger between WSE and UCE marks a significant development in the cross-border remittances and currency exchange sector in Pakistan. With regulatory compliance and a focus on enhancing market dynamics, this merger is poised to benefit consumers by providing improved access to financial services and promoting market competitiveness.