The Competition Commission of Pakistan (CCP) has approved the proposed merger of Junaid Jamshed (Private) Limited (JJPL) with and into U&I Garments (Private) Limited (U&I).
The merger application was jointly submitted by U&I and JJPL, seeking CCP’s authorization for the acquisition of the entire business of JJPL by U&I through a share swap arrangement. Following the completion of the transaction, JJPL will cease to exist as a separate legal entity, and its operations, assets, and liabilities will be fully integrated into U&I.
CCP conducted a Phase-I competition assessment to evaluate whether the proposed merger would result in the creation or strengthening of a dominant position in the relevant markets, which include ready-made apparel, footwear, accessories, fragrances, and cosmetics.
CCP noted that the transaction is primarily an intra-group consolidation, as U&I already holds a 25 percent stake in JJPL.
The Commission determined that the transaction would not substantially lessen competition in any relevant market due to limited horizontal overlaps, low entry barriers, and the presence of numerous market competitors. Accordingly, CCP authorized the merger under Section 31(1)(d)(i) of the Competition Act, 2010.
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Wow, CCP clearing this merger. That shows how active this miserable entity is. What about the acquisition of Telenor operations by Ufone. Unfortunately CCP remained oblivious that monopolies are being created by Mobilink and Ufone. Both giants are fleecing mong from customers as they increase tariffs unabated. Shame and pity on CCP. Keep on sleeping……and remain vigilant on 2 rupee transactions… wow