ISLAMABAD: The Competition Commission of Pakistan (CCP) has officially approved the merger of Junaid Jamshed (Private) Limited (JJPL) with U&I Garments (Private) Limited (U&I). The approval allows U&I to acquire full ownership of JJPL through a share swap arrangement. Following the transaction, JJPL will cease to operate as a separate legal entity, and all of its operations, assets, and liabilities will be consolidated under U&I.
The Junaid Jamshed U&I merger application, submitted jointly by both companies, marks a significant strategic move in the fashion and retail sector. U&I already owns a 25% stake in JJPL, making this merger primarily an intra-group consolidation. By fully absorbing JJPL’s operations, U&I aims to streamline management and consolidate its market position in the lifestyle and fashion retail industry.
As part of its standard procedure, the CCP conducted a Phase I competition assessment to evaluate whether the proposed consolidation could potentially harm market competition. The review focused on relevant consumer markets, including ready-made apparel, footwear, accessories, fragrances, and cosmetics.
The Commission concluded that the merger would not lead to the creation or strengthening of a dominant position. It cited limited horizontal overlaps between the two companies, low market entry barriers, and strong competitive dynamics with numerous players in the field as key reasons for approval.
The transaction was authorized under Section 31(1)(d)(i) of the Competition Act, 2010, which deals with mergers that do not significantly reduce competition. CCP’s decision underscores the importance of maintaining fair market practices while also facilitating business growth and operational synergy.
This merger is expected to reinforce U&I’s market presence by combining its operational strength with Junaid Jamshed’s brand recognition and consumer base. Industry analysts view the move as a proactive step towards business expansion and improved efficiency in Pakistan’s competitive retail landscape.
With this merger, the iconic J. brand under JJPL enters a new phase under the U&I umbrella. While JJPL will dissolve as a standalone entity, its legacy in traditional wear and lifestyle products is set to continue, powered by U&I’s infrastructure and strategic vision.
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