Textile Yarn Merger Approved

ISLAMABAD – CCP has approved merger in textile yarn sector. The approved transaction includes acquisition of up to 29.43% of shares in M/s. Gatron (Industries) Ltd by M/s. Nova Frontiers Ltd. M/s. Nova Frontiers Ltd., an unlisted public company of Pakistan, engages in investments in stocks, shares, bonds, mutual fund units and related securities. Whereas M/s Gatron (Industries) Ltd. is a public listed company whose main business is the production of polyester fiber yarn in Pakistan. Later in 1988, Gatron expanded its product offering by introducing a polyethylene terephthalate (PET) line that offered increased durability and versatility in a variety of applications. CCP’s Phase I competitive assessment identified “polyester fiber yarn (PFY) and polyethylene terephthalate (PET)” as relevant markets. Following the transaction, Nova Frontiers Ltd’s market share in both markets will remain unchanged. The analysis confirmed that the transaction would not result in Nova Frontiers Ltd dominating the relevant market and therefore the merger was authorized under Section 31 of the Competition Act 2010. With this approval, CCP aims to create a sustainable and fertile environment for growth textile industry. Thus ensuring the availability of innovative products that adapt to contemporary market requirements.