CCP approves textile and apparel acquisition

The Competition Commission of Pakistan (CCP) has approved a merger in the 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.

Nova Frontiers Ltd, an unlisted public company of Pakistan, is engaged in investing in stocks, shares, bonds, mutual fund units and related securities.

Gatron (Industries) Ltd is a publicly traded company whose primary business is the production of polyester yarn in Pakistan. 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 competition assessment identified “polyester fiber yarn (PFY) and polyethylene terephthalate (PET)” as relevant markets. After the transaction, Nova Frontiers Ltd’s share in both markets will remain unchanged.

The analysis confirmed that the transaction would not lead to dominance by Nova Frontiers Ltd in the relevant market and therefore clearance of the merger was granted under section 31 of the Competition Act 2010.

With this acceptance, CCP aims to create a sustainable and fertile environment for the development of the textile industry. Thus ensuring the availability of innovative products that adapt to modern market requirements.