ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved a merger in the Health Insurance and Health Takaful sector on Friday.
The approved deal entails EFU Life Assurance acquiring 100% shareholding of EFU Health Insurance Limited.
EFU Life Assurance, a publicly listed company, specialized in life insurance, including ordinary life and pension fund business. On the other hand, EFU Health Insurance Limited, an unlisted public limited company, focuses on selling health insurance and health takaful cover in Pakistan.
The acquisition involves EFU Life Assurance acquiring EFU Health from EFU Services (Private) Limited and six other shareholders. EFU Life will issue its ordinary shares at a predetermined swap ratio to the current shareholders of EFU Health.
After a Phase 1 Review, the CCP determined that the merger wouldn’t result in the acquirer dominating the relevant market post-transaction completion. Therefore, the merger received authorization.
This approval signifies a significant development in Pakistan’s health insurance and health takaful sector, showcasing ongoing consolidation and strategic realignment within the industry. It holds the potential to enhance services and offerings for customers.
