Nova Frontiers and Gatron Industries Merger in Textile Yarn Sector Gets CCP Approval
The Competition Commission of Pakistan (CCP) has granted approval for a merger within the textile yarn sector. This approved transaction involves M/s. Nova Frontiers Limited acquiring up to 29.43% shareholding in M/s. Gatron (Industries) Limited.
M/s. Nova Frontiers Limited, a Pakistani publicly unlisted company, primarily engages in investments related to shares, stocks, bonds, mutual fund units, and securities.
On the other hand, M/s. Gatron (Industries) Limited is a publicly listed company known for manufacturing polyester filament yarn in Pakistan. In 1988, Gatron expanded its operations to include a Polyethylene Terephthalate (PET) line, enhancing product durability and versatility across various applications. CCP’s Phase I competition assessment identified ‘Polyester Filament Yarn (PFY) and Polyethylene Terephthalate (PET)’ as the relevant markets. Post-merger, Nova Frontiers Limited’s market share in these sectors will remain unchanged.
The analysis confirmed that the merger will not result in Nova Frontiers Limited dominating the relevant market. Therefore, CCP authorized the merger under Section 31 of the Competition Act, 2010.
With this approval, CCP aims to foster a sustainable environment conducive to the growth of the textile industry. This initiative ensures the availability of innovative products that meet current market demands.
