KEY POINTS
- Systems Limited to acquire BAT’s SAA Services in Pakistan
- CCP says no competition concerns in the domestic BPO sector
- Deal expected to bring tech transfer, job creation benefits
- Acquisition aligned with Pakistan’s digital transformation goals
ISLAMABAD: Pakistan’s competition watchdog on Thursday gave the green light for local tech firm Systems Limited to acquire SAA Services, the back-office support arm of British American Tobacco, saying the deal poses no competition concerns in the domestic market.
The Competition Commission of Pakistan (CCP) has approved the acquisition of SAA Services (Private) Limited by Systems Limited from British American Tobacco International Holdings (UK) Limited.
According to CCP officials, the transaction does not raise competition concerns in the domestic market.
The deal, executed under a Share Purchase Agreement, was reviewed under Phase I of the CCP’s merger assessment framework in accordance with the Competition Act, 2010.
Systems Limited, a leading Pakistani technology company in software development, business process outsourcing (BPO), and cloud services, will take full ownership of SAA Services, a captive service provider within the global BAT Group.
According to CCP, the target company provides IT and IT-enabled services — including HR, finance, procurement, and digital technology — exclusively to BAT Group companies, without serving external customers in Pakistan or abroad.
The Commission concluded that, as there is no customer overlap with Systems Limited, the acquisition would neither consolidate market power nor reduce competition in the BPO or IT services sector.
The CCP further noted that the transaction could yield strategic and economic benefits, enabling Systems Limited to leverage global expertise and best practices to enhance service offerings in Pakistan.
The acquisition is also expected to contribute to national objectives of job creation and technology transfer, accelerating the digital transformation.
CCP authorised the transaction under Section 31(1)(d)(i) of the Competition Act, 2010, determining that it will not create or strengthen a dominant position in the relevant market.
