The Competition Commission of Pakistan (CCP) has given its clearance to a merger in the textile yarn industry as part of the approved transaction, M/s. Nova Frontiers Limited will acquire up to 29.43% of the shareholdings of M/s. Gatron (Industries) Limited.
The Pakistani public unlisted company M/s. Nova Frontiers Limited invests in various types of securities, including shares, stocks, bonds, units of mutual funds, and similar securities.
One of M/s Gatron (Industries) Limited’s most important businesses is the production of polyester filament yarn in Pakistan. This is a publicly traded firm. In the latter part of 1988, Gatron broadened its product offering by launching the Polyethylene Terephthalate (PET) line. This line offered improved durability and versatility in a variety of applications.
The CCP identified “Polyester Filament Yarn (PFY) and Polyethylene Terephthalate (PET)” as the relevant markets in the first phase of its competitive evaluation. After the deal is completed, Nova Frontiers Limited’s market share in both markets will not change.
Section 31 of the Competition Act of 2010 granted permission for the merger based on the analysis’s findings, which showed that the merger would not give Nova Frontiers Limited a dominant position in the relevant market.
Through this approval, the CCP intends to create an environment that is both sustainable and conducive to the expansion of the textile sector; consequently, it will guarantee the availability of innovative items that can accommodate the requirements of the modern market.
