July 01, 2024 (MLN): The Competition Commission of Pakistan (CCP) has approved the merger in the textile yarn sector, involving Nova Frontiers Ltd acquiring up to 29.43% shareholding of Gatron (Industries) Ltd.
CCP shared the development in a press release issued on Saturday.
Nova Frontiers ltd, a Pakistani public unlisted company, is involved in investments of shares, stocks, bonds, units of mutual funds, and related securities.
While, Gatron (Industries) ltd is a public listed company with a prime business of manufacturing polyester filament yarn in Pakistan.
Later in 1988, Gatron expanded its product range by introducing the Polyethylene Terephthalate (PET) line, which offered enhanced durability and versatility in various applications.
The CCP’s Phase I competition assessment identified ‘Polyester Filament Yarn (PFY) and Polyethylene Terephthalate (PET)’ as the relevant markets.
Post-transaction the market share of Nova Frontiers ltd in both the markets will remain unchanged.
The analysis confirmed that the transaction will not lead to the dominance of Nova Frontiers ltd in the relevant market, therefore, the merger was authorized under Section 31 of the Competition Act, 2010.
With this approval, CCP aims at developing a sustainable and fertile environment for the textile industry's growth, it said. Thus, ensuring availability of innovative products that adapts to the contemporary market demands.
