UAE Company Gets Approval to Buy Masood Textile Mills Shares

The Competition Commission of Pakistan (CCP) has approved the acquisition of a shareholding in Masood Textile Mills Limited by UAE-based Velora Global Ventures-F.Z.C. from two Chinese companies, Shanghai Challenge Textile Company Limited and Zhejiang Xinao Industry Company Limited. Velora Global Ventures, a wholesale trading firm engaged in textiles and clothing, as well as commercial brokerage activities outside Pakistan, will acquire the shares under a Share Purchase Agreement.

The CCP conducted a Phase-I competition assessment under the Competition Act, 2010, and found that the transaction would not substantially lessen competition or create a dominant position in the relevant markets. The commission concluded that Velora Global Ventures had no pre-merger market presence in Pakistan, and the acquisition would not cause any material change in Masood Textile Mills' output, domestic sales, or market position.

The CCP authorized the transaction under Section 31(1)(d)(i) of the Competition Act, 2010, emphasizing the importance of timely and transparent merger and acquisition reviews to facilitate investment and economic activity while safeguarding competitive markets and consumer interests in Pakistan.

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