UAE Company Gets Approval to Buy Masood Textile Mills Shares

Meanwhile, 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.

Key points

• The transaction involves the acquisition of shares from Shanghai Challenge Textile Firm Limited and Zhejiang Xinao Industry Business Limited under a Share Purchase Agreement.
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• Masood Textile Mills, a publicly listed Pakistani firm, manufactures and sells cotton and synthetic fiber yarn, knitted and dyed fabrics, and garments.
• Consequently, the acquisition is not projected to materially change Masood Textile Mills' output, domestic sales or market position.

For context, the transaction involves the acquisition of shares from Shanghai Challenge Textile Firm Limited and Zhejiang Xinao Industry Business Limited under a Share Purchase Agreement.

Velora Global Ventures, registered with the Ajman Free Zone Authority in the United Arab Emirates, is engaged in wholesale trading of textiles and clothing and commercial brokerage activities outside Pakistan. Its associated firms, Gulf Textile Sourcing F.Z.C. And Zara Textile Trading F.Z.C., are involved in international textile sourcing and trading, customer development and order coordination.

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During its Phase I assessment, the CCP examined whether the transaction could substantially lessen competition or create or strengthen a dominant position. The commission discovered that Velora Global Ventures had no pre merger market presence in Pakistan.

Consequently, the acquisition is not projected to materially change Masood Textile Mills' output, domestic sales or market position. The CCP additionally examined the potential vertical relationship between Velora's international textile trading activities and Masood Textile Mills' manufacturing operations and identified no competition reservations.

Meanwhile, the commission further determined that the transaction would not create entry barriers or significantly growth the acquirer's market power. It therefore authorized the acquisition under Section 31(1)(d)(I) of the Competition Act, 2010. Stay Connected with ProPakistani.

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For now, UAE Company Gets Approval to Buy Masood Textile Mills Shares remains the part of the story worth watching, and further updates are likely as more details are confirmed.