ISLAMABAD: The Competition Commission of Pakistan (CCP) has given approval for a merger in the health insurance and health Takaful sectors.
The approved transaction involves acquisition of 100% stake in M/S EFU Health Insurance Limited by M/S EFU Life Assurance.
The acquirer, EFU Life Assurance, is a publicly traded company. It deals with life insurance, including ordinary life insurance and pension funds. While the target company, EFU Health Insurance Limited, is an unlisted joint stock company. Its main activities include selling health insurance and Takaful health insurance in Pakistan.
EFU Life Assurance acquires 100% stake in EFU Health from M/s. EFU Services (Private) Limited and six other shareholders. EFU Life will issue its own ordinary shares in a swap ratio to the current shareholders of EFU health.
Following a Phase 1 review, the CCP has determined that the proposed transaction will not result in the acquirer gaining a dominant position in the relevant market upon completion of the transaction. As a result, the merger was allowed.
The approval of the acquisition of EFU Health by EFU Life marks a significant development in the health insurance and health Takaful sector in Pakistan. It reflects ongoing consolidation and strategic realignment within the industry, which could potentially lead to improved customer service and offerings.
