ISLAMABAD, September 24 — The Competition Commission of Pakistan (CCP) has approved UAE-based Velora Global Ventures-F.Z.C.’s acquisition of shareholding in Masood Textile Mills Limited from two Chinese companies after finding the transaction unlikely to raise competition concerns in Pakistan.
The deal involves Velora Global Ventures acquiring shares in the Pakistani textile manufacturer from Shanghai Challenge Textile Company Limited and Zhejiang Xinao Industry Company Limited under a Share Purchase Agreement.
The CCP granted approval following a Phase-I competition assessment under the Competition Act, 2010.
Masood Textile Mills is a publicly listed Pakistani textile company engaged in manufacturing and selling cotton and synthetic fibre yarn, knitted and dyed fabrics, and garments.
Velora Global Ventures is registered with the Ajman Free Zone Authority in the United Arab Emirates and operates in textile and clothing wholesale trading and commercial brokerage 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.
During its assessment, the CCP examined whether the proposed acquisition could substantially reduce competition or create or strengthen a dominant market position.
The regulator found that Velora Global Ventures had no presence in Pakistan before the transaction and concluded that the acquisition was not expected to materially affect Masood Textile Mills’ production, domestic sales or existing market position.
The commission also assessed potential vertical links between Velora Global Ventures’ international textile trading operations and Masood Textile Mills’ manufacturing business.
Given the nature and scope of their respective operations, the CCP concluded that the relationship was unlikely to create competition concerns.
The regulator further found that the acquisition would neither create barriers to market entry nor significantly increase the acquirer’s market power.
On that basis, the CCP authorised the transaction under Section 31(1)(d)(i) of the Competition Act, 2010.
The approval represents another cross-border transaction involving Pakistan’s textile sector, with a UAE-based investor acquiring shares previously held by Chinese companies.
The CCP said its merger-control framework was designed to provide regulatory certainty for investment and business expansion while ensuring mergers and acquisitions do not undermine competition or consumer interests in Pakistan.