The Competition Commission of Pakistan (CCP) has approved a proposed joint venture between Nestlé S.A. and Forward I S.à r.l., an entity controlled by Platinum Equity, following a Phase-I assessment under the Competition Act, 2010.
The transaction covers Nestlé’s waters and beverages business across multiple countries, including its bottled water operations in Pakistan. Under the arrangement, Nestlé will transfer the relevant business to WPB JVco S.à r.l., a Luxembourg-incorporated company, while Forward I will subsequently acquire a shareholding, establishing joint control with Nestlé.
In Pakistan, Nestlé Pakistan Limited’s water business will be transferred as a going concern to a newly incorporated subsidiary through a scheme of arrangement. Its shares will later move to an upstream Nestlé entity, bringing the business under the joint venture structure. Nestlé markets its bottled water in Pakistan under the Nestlé Pure Life brand.
The CCP identified bottled water products as the relevant product market and Pakistan as the geographic market. It found no horizontal or vertical overlap between the target business and Forward I or Platinum Equity-controlled companies operating in the country. Therefore, the transaction is not expected to change existing market shares.
The Commission also noted that established and certified manufacturers, along with alternative compliant brands, provide sufficient competition and allow consumers to switch between products. It concluded that the joint venture would not create entry barriers, restrict existing competitors, substantially lessen competition, or strengthen a dominant market position.
Consequently, the CCP authorised the transaction under Section 31(1)(d)(i) of the Competition Act, 2010. The Commission said its merger review process aims to facilitate investment, including foreign direct investment, while protecting market competition, consumer choice, and opportunities for businesses.
