CCP Approves Acquisition Of Shareholding In Masood Textile Mills By UAE’s Velora Global.
Listen3 min
Read aloud by your device’s built-in synthetic voice, not a recording. Needs a browser that can read aloud.
✧ GENERATE BRIEFING
The Competition Commission of Pakistan (CCP) has granted formal approval for the acquisition of a shareholding in Masood Textile Mills Limited by UAE-based Velora Global Ventures-F.Z.C. under a Phase-I competition assessment. The transaction entails acquiring shares from two existing Chinese investors, Shanghai Challenge Textile Company Limited and Zhejiang Xinao Industry Company Limited, via a Share Purchase Agreement.Velora Global Ventures, registered under the Ajman Free Zone Authority, specializes in international textile wholesale trading and commercial brokerage, with associated firms operating in global textile sourcing. Masood Textile Mills is a major publicly listed Pakistani manufacturer specializing in yarn, knitted and dyed fabrics, and finished garments. The CCP's assessment concluded that because Velora Global Ventures lacks a pre-merger market presence in Pakistan, the transaction will not distort domestic market dynamics, create entry barriers, or raise vertical competition concerns, thereby facilitating foreign direct investment (FDI) while maintaining competitive market standards.
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. from two Chinese companies, following a Phase-I competition assessment under the Competition Act, 2010.
The transaction involves the acquisition of shares from Shanghai Challenge Textile Company Limited and Zhejiang Xinao Industry Company Limited, pursuant to a Share Purchase Agreement.
Velora Global Ventures-F.Z.C., incorporated and registered with the Ajman Free Zone Authority in the United Arab Emirates, is engaged in the wholesale trading of textiles and clothing and commercial brokerage activities outside Pakistan. Its associated companies, 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.
Masood Textile Mills Limited, a publicly listed Pakistani company, is engaged in the manufacture and sale of cotton and synthetic fibre yarn, knitted and dyed fabrics, and garments.
During its Phase-I assessment, CCP examined whether the transaction could substantially lessen competition or create or strengthen a dominant position. The assessment established that Velora Global Ventures had no pre-merger market presence in Pakistan. The acquisition is, therefore, not expected to result in any material change in Masood Textile Mills’ output, domestic sales or market position.
CCP also examined the potential vertical relationship between the Acquirer’s international textile trading activities and the Target’s manufacturing operations. Given the nature and scope of their respective activities, the Commission found that the vertical relationship was not expected to give rise to competition concerns. The Commission further determined that the transaction would neither create entry barriers nor significantly enhance the Acquirer’s market power. Accordingly, CCP authorized the transaction under Section 31(1)(d)(i) of the Competition Act, 2010.
CCP continues to facilitate investment and economic activity through the timely and transparent review of mergers and acquisitions while ensuring that transactions do not harm competition. An effective merger-control regime provides regulatory certainty, supports foreign direct investment (FDI) and business expansion, and safeguards competitive markets and consumer interests in Pakistan.
Investments
Investments
Business