CCP approves full takeover of PIA by Holdco

WEB DESK: The Competition Commission of Pakistan (CCP) has greenlit the acquisition of Pakistan International Airlines Corporation Limited (PIA) by PIA Holding Company Limited (Holdco).

This decision aligns with the Pakistani government’s ongoing privatisation agenda for PIA. Holdco was established to absorb PIA’s assets, liabilities, and subsidiaries as part of the restructuring process.

While PIA remains publicly listed, Holdco will take over its entire shareholding, along with non-core assets and liabilities.

The Federal Government’s approval, based on the “Divestment of PIACL: Legal Segregation Plan and Transaction Structure,” paves the way for this acquisition, ensuring that PIA retains its core aviation services.

The CCP’s assessment identified the real estate market in Pakistan as the relevant sector, given PIA’s extensive property holdings.

However, the commission determined that the acquisition would not result in a monopolistic position for Holdco in this market.

Core aviation activities and allied services will continue under PIA’s management, safeguarding its operational integrity.

This decision underscores the government’s commitment to modernise state-owned enterprises while attracting investment through initiatives like the Special Investment Facilitation Council (SIFC).

The CCP’s swift approval reflects its support for the government’s broader economic revival strategy, signalling a significant step towards privatising state-owned entities and revitalising Pakistan’s economy.

In summary, the CCP’s approval of the acquisition marks a crucial milestone in PIA’s restructuring journey.

Holdco’s takeover of PIA’s shareholding and non-core assets signals a strategic shift towards privatisation while preserving PIA’s essential aviation services.

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