CCP approves merger of security printing companies

KARACHI: The Competition Commission of Pakistan (CCP) has approved the acquisition of 100 per cent equity shares of National Security Printing Company (Private) Limited by Pakistan Security Printing Corporation (Private) Limited. This merger marks a significant development in the reorganization of Pakistan’s security printing sector.

The strategic transaction aims to enhance efficiency through economies of scale and eliminate redundancies within government-owned enterprises. Pakistan Security Printing Corporation, a wholly owned subsidiary of the State Bank of Pakistan (SBP), is responsible for printing currency notes and prize bonds on behalf of the SBP. National Security Printing Company specializes in producing essential security documents, including passports, degrees, cheques and various government stamps.

This acquisition will consolidate security printing operations under a unified framework, all governed by the federal government and the SBP. The reorganization is expected to streamline operations, reduce duplication of efforts and improve resource allocation, thereby contributing to the long-term stability of Pakistan’s security printing infrastructure.

Despite the merger, market dynamics will remain unchanged. National Security Printing Company will retain its exclusive market share for vital security documents, while Pakistan Security Printing Corporation will continue its role in currency and prize bond printing. Both entities will remain under the management of the State Bank of Pakistan, mitigating any competitive concerns arising from the merger.

The Draft Share Purchase Agreement (DSPA) governing the transaction has been submitted to the Finance Division for approval, with the transaction value currently under negotiation. This merger is viewed as a crucial step towards achieving greater operational synergies while ensuring the federal government retains ownership post-transaction.