Key Takeaways
- The Competition Commission of Pakistan (CCP) has approved the acquisition of shares in Masood Textile Mills Limited (MTML) by UAE-based Velora Global Ventures.
- The transaction involves shares held by Chinese investors Shanghai Challenge Textile and Zhejiang Xinao Industry.
- CCP’s assessment concluded that the acquisition would not significantly impact competition in Pakistan’s textile market.
The Competition Commission of Pakistan (CCP) has given its approval for the acquisition of shares in Pakistan’s listed textile manufacturer, Masood Textile Mills Limited (MTML), by UAE-based Velora Global Ventures-F.Z.C., according to Business Recorder.
The transaction, which involves the acquisition of shares held by Shanghai Challenge Textile Company Limited and Zhejiang Xinao Industry Company Limited, both incorporated in China, was cleared at the Phase-I stage of the CCP’s competition assessment process.
Velora Global Ventures, incorporated and registered with the Ajman Free Zone Authority on June 26, 2025, is engaged in wholesale trading of textiles and clothing and commercial brokerage activities outside Pakistan.
Masood Textile Mills, established in 1984, manufactures and sells cotton and synthetic fibre yarn, knitted and dyed fabrics, and garments.
The CCP defined the relevant product market as ‘Yarn and Knitted Fabric’ and the relevant geographic market as Pakistan. The Commission noted that Velora had no market presence in Pakistan prior to the transaction, with a nil pre-merger market share.
The CCP’s assessment concluded that the acquisition was unlikely to substantially lessen competition, create or strengthen a dominant position, create entry barriers, or significantly enhance Velora’s market power.
CCP’s findings were based on the transaction’s potential vertical relationship arising from Velora’s international textile trading activities and MTML’s manufacturing operations. Given the nature and scope of their respective activities, the Commission concluded that the relationship was not expected to raise competition concerns.
The transaction was authorised under Section 31(1)(d)(i) of the Competition Act, 2010, which pertains to mergers and acquisitions that do not harm competition.
The CCP clarified that its assessment was limited to competition review under Section 11 of the Act, while matters outside its jurisdiction remain subject to applicable laws, judicial orders, and oversight of relevant regulatory bodies.
CCP continues to facilitate investment and economic activity through the timely and transparent review of mergers and acquisitions while ensuring that transactions do not harm competition.
