The Competition Commission of Pakistan (CCP) has approved two interconnected merger transactions forming part of a broader global restructuring involving Toyota Motor Corporation, Daimler Truck AG, Hino Motors Limited, and Mitsubishi Fuso Truck and Bus Corporation (MFTBC). The approval follows a detailed assessment of the transactions’ potential impact on competition within Pakistan’s commercial vehicle market.
According to the CCP, the two transactions are linked and together constitute a single integrated business restructuring aimed at consolidating and jointly managing the commercial vehicle operations of Hino and MFTBC through a newly established holding structure. The restructuring is designed to align global operations and governance of the two commercial vehicle manufacturers under a coordinated ownership and management framework.
Under the first part of the restructuring, Toyota Motor Corporation, through its subsidiary Hino Motors Limited, has acquired full ownership of Mitsubishi Fuso Truck and Bus Corporation. This transaction results in Toyota assuming complete control over MFTBC’s operations, including its strategic direction and global business activities.
Simultaneously, Daimler Truck AG has acquired an interest in a newly incorporated holding company, AIB Limited. Through this holding company, Hino Motors Limited and Mitsubishi Fuso Truck and Bus Corporation will be jointly owned and managed. The CCP noted that this structure enables collaborative oversight of the two businesses while maintaining a unified operational strategy at the global level.
In its review, the Competition Commission of Pakistan examined both transactions with a particular focus on their potential effects on competition in Pakistan. The assessment concentrated on the manufacturing and distribution of buses and trucks, where both Hino and MFTBC have commercial vehicle operations. The Commission acknowledged that there is some degree of overlap between the two companies’ product offerings in the commercial vehicle segment.
However, the CCP concluded that the restructuring does not create or strengthen a dominant position in the relevant markets. The Commission observed that Pakistan’s commercial vehicle sector remains competitive, with several established domestic and international players continuing to operate across various segments of the market. As a result, the presence of alternative suppliers and ongoing competition was found to mitigate any potential adverse effects arising from the consolidation.
Regarding Daimler Truck AG’s acquisition of an interest in AIB Limited, the Commission highlighted that Daimler Truck AG no longer maintains any independent commercial vehicle operations in Pakistan. Its only relevant interest in the local market, Mitsubishi Fuso Truck and Bus Corporation, had already been acquired by Toyota Motor Corporation under the first phase of the restructuring.
Consequently, the CCP determined that Daimler Truck AG’s involvement through the holding company is competitively neutral in the context of Pakistan. The transaction was found to have no impact on market structure, pricing, output, or competitive dynamics within the country’s commercial vehicle industry.
Based on its comprehensive assessment, the Competition Commission of Pakistan concluded that the two interconnected transactions, when considered collectively as part of a single global restructuring, do not raise any competition concerns. Both transactions were reviewed and approved in accordance with the Competition Act, 2010, and the Competition Merger Control Regulations, 2016.
The approval underscores the CCP’s role in ensuring that large-scale global mergers and restructurings involving multinational corporations do not adversely affect competition in Pakistan, while allowing businesses to pursue strategic realignments that are consistent with market principles and regulatory requirements.
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