Within the framework of a combined property and operations deal, the shareholders of the two wholesale companies Makro-Habib Pakistan Limited ("MHPL") and METRO Cash & Carry Pakistan (Private) Limited ("MCCP") plan to combine their businesses in Pakistan.
The agreement between them stipulates that Thal Limited, the parent company of MHPL is going to own a majority stake in the company comprising substantially all the real estate of both MHPL and MCCP while METRO Cash & Carry will hold a major part of the operational business of MHPL and MCCP. The merger is still subject to the approval of the Pakistani anti-trust authority and corporate, regulatory and other approvals and the sanction of the Court.
Such arrangement is proposed to yield benefits in the form of economies of scale to the two businesses and, resultantly, to the shareholders of MCCP and MHPL. Both companies currently run five wholesale cash and carry stores each in Pakistan, with stores located in the cities of Faisalabad, Islamabad, Karachi and Lahore.