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ISLAMABAD, Aug 20 (APP):The Competition Commission of Pakistan (CCP) has approved the merger of HA Fibres (Private) Limited (HAFL) with Husnain Textile Mills (Private) Limited (HTML), according to an official announcement made on Wednesday.
The approval follows the Commission’s determination that the amalgamation, aimed at enhancing operational efficiency in yarn production, would neither substantially reduce market competition nor create entry barriers, given the limited market share of the combined entity.
“The transaction involves the amalgamation of HAFL with and into HTML, with both undertakings being private limited companies incorporated in Pakistan,” the CCP said in a news release.
Husnain Textile Mills, incorporated in 2004, is engaged in the manufacturing and sale of yarn. Similarly, HAFL, incorporated in 2006, operates in the same line of business. Both entities are active in the textile sector, specifically within the yarn production segment.
In its review of the proposed transaction, the Commission identified the relevant market as “Yarn – Cotton Polyester” within Pakistan.
Upon evaluation, the Commission concluded that the transaction does not result in a substantial lessening of competition.
The parties’ combined market share remains limited, and the merger neither creates nor strengthens a dominant position in the relevant market.
Moreover, the CCP said that the transaction does not give rise to any significant entry barriers, and accordingly, it has authorized the proposed merger under Section 31 of the Competition Act, 2010.