The Competition Commission of Pakistan (CCP) has cleared Systems Limited’s acquisition of SAA Services (Pvt) Ltd from British American Tobacco International Holdings (UK) Ltd, allowing the Pakistani technology firm to take full ownership of the captive service provider. The transaction was reviewed under Phase I of CCP’s merger framework, which evaluates acquisitions in line with the Competition Act 2010. After detailed assessment, the regulator determined that the deal does not raise competition concerns, given SAA Services’ limited role and lack of market overlap with Systems in the domestic BPO space.
SAA Services has so far operated exclusively within the BAT ecosystem, handling support functions such as human resources, finance, procurement, and digital technology for group companies. It has no external clients either in Pakistan or internationally, which meant its acquisition did not change competitive dynamics in the local outsourcing market. CCP noted that Systems Limited’s core business in software, cloud solutions, and BPO will remain distinct, and the takeover of SAA Services does not consolidate market share or reduce choice for customers. With no evidence of dominance being created, the deal was cleared under Section 31(1)(d)(i) of the Competition Act.
For Systems Limited, the acquisition is expected to bring operational advantages, including access to international best practices in captive services and exposure to global business standards. These can be integrated into the company’s existing service portfolio to enhance efficiency and strengthen its offerings for both local and overseas clients. CCP highlighted that such transactions carry broader strategic benefits for the economy by contributing to job creation, technology transfer, and Pakistan’s wider digital transformation agenda. The addition of SAA Services is also aligned with Systems’ ambition to deepen its role in managed services and expand its footprint in knowledge-based functions.
This approval comes at a time of rising momentum in Pakistan’s IT and BPO sector. According to official data, the industry recorded a 23.7 percent growth in exports during FY25, with earnings climbing to US$2.825 billion. This expansion has positioned IT-enabled services among the fastest-growing contributors to the national economy. By facilitating acquisitions that strengthen domestic companies without distorting competition, regulators believe Pakistan can support sustainable growth in its outsourcing sector while equipping local firms with the scale and expertise needed to compete globally. Systems Limited’s acquisition of SAA Services is viewed within this context as part of the broader development of Pakistan’s knowledge economy.
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