February 23, 2024 (MLN): The Competition Commission of Pakistan (CCP) has approved the acquisition of Fauji Foundation's Fauji Cereals Business by Fauji Foods Limited (PSX: FFL), according to a press release issued by the commission.

The Fauji Foundation, established as a charitable trust for the welfare of ex-servicemen and their families, submitted a pre-merger application to the CCP under Section 11 of the Competition Act, 2010.

The proposed transaction involves the acquisition of the Fauji Cereals Business by Fauji Foods Limited through a Business Transfer Agreement.

Fauji Foods Limited is a publicly listed company incorporated in Pakistan, primarily focused on the production and sale of dairy and allied products.

CCP's assessment of the pre-merger application indicated that there were no overlaps between the merging parties in the areas of business activities such as Breakfast Cereals and Wheat, Barley & Porridge.

Therefore, the CCP concluded that market conditions will remain unchanged post-transaction, with no significant alteration to the competitive landscape in these product categories.

Following competition assessment, CCP concluded that the proposed transaction involves the acquisition of shares and does not suggest any substantial lessening of competition or the creation or strengthening of a dominant position in the relevant market.

The restructuring will ensure the Breakfast Cereal business is consolidated under one arm and result in future profitability.

It is crucial to mention here that FFL through a notice on PSX informed that it has acquired the entire equity stake of Fauji Foundation in Fauji Infraavest Foods Limited and the cereals business of Fauji Foundation operating under the brand name `Fauji Cereals’

This move marks the successful creation of a consumer food vertical within the group & is in line with FFL’s ambition of becoming an FMCG powerhouse in Pakistan.

Copyright Mettis Link News

Posted on: 2024-02-23T10:04:31+05:00