CCP approves UAE firm’s acquisition of Masood Textile Mills shares

The Competition Commission of Pakistan has cleared a share purchase that will see UAE-based Velora Global Ventures-F.Z.C. take a stake in Masood Textile Mills Limited, Business Recorder reported. The shares will be bought from Shanghai Challenge Textile Company Limited and Zhejiang Xinao Industry Company Limited. The CCP gave its approval after a Phase-I review under the Competition Act, 2010, and announced the decision in a statement on Thursday.

During the review, the commission looked at whether the transaction might reduce competition or entrench a dominant market position. It found that Velora had no pre-merger presence in the Pakistani market, so Masood's output, domestic sales and market position were not expected to change materially. It also judged that the buyer's international textile trading did not raise concerns when set against Masood's manufacturing, and that the deal would not create entry barriers.

The regulator said timely and transparent merger reviews support investment, and that an effective regime gives foreign investors regulatory certainty. Velora's associated firms, Gulf Textile Sourcing F.Z.C. and Zara Textile Trading F.Z.C., work in international textile sourcing and trading. Masood Textile Mills is a listed Pakistani company whose products include yarn, knitted and dyed fabrics and garments.