The Competition Commission of Pakistan (CCP) has approved the acquisition of shareholding in Masood Textile Mills Limited by UAE-based Velora Global Ventures-F.Z.C. The shares are being acquired from Chinese companies Shanghai Challenge Textile Company Limited and Zhejiang Xinao Industry Company Limited under a Share Purchase Agreement.
The transaction was reviewed under a Phase-I competition assessment in accordance with the Competition Act, 2010. The CCP found that Velora Global Ventures had no existing market presence in Pakistan, meaning the acquisition is not expected to materially affect Masood Textile Mills’ output, domestic sales or market position.
The Commission also reviewed potential vertical links between Velora’s international textile trading activities and Masood Textile Mills’ manufacturing operations. It concluded that the relationship was unlikely to create competition concerns, entry barriers or significantly increase market power.
Accordingly, the CCP authorized the transaction under Section 31(1)(d)(i) of the Competition Act, 2010. The Commission said its merger-review process aims to provide regulatory certainty, facilitate foreign investment and business expansion, and protect competitive markets in Pakistan.
