The Competition Commission of Pakistan (CCP) has approved the acquisition of shares in Masood Textile Mills Limited by UAE-based Velora Global Ventures F.Z.C., clearing the deal after its initial competition review.

Under the transaction, Velora will purchase shares in Masood Textile from two Chinese companies, Shanghai Challenge Textile Company Limited and Zhejiang Xinao Industry Company Limited.

Velora Global Ventures is registered with the Ajman Free Zone Authority in the United Arab Emirates. The company operates in textile and clothing wholesale trading and commercial brokerage outside Pakistan.

Its associated companies, Gulf Textile Sourcing F.Z.C. and Zara Textile Trading F.Z.C., are involved in international textile sourcing, trading, customer development and order coordination.

Masood Textile Mills is a listed Pakistani company that produces and sells cotton and synthetic fiber yarn, knitted and dyed fabrics, and garments.

The CCP reviewed the deal under the Competition Act, 2010, to determine whether it could reduce competition or give the buyer a stronger market position.

The commission noted that Velora had no existing market presence in Pakistan before the acquisition. It therefore expects the transaction to have no major impact on Masood Textile Mills’ production, local sales or market position.

The CCP also reviewed the relationship between Velora’s international trading activities and Masood Textile Mills’ manufacturing business. It found no competition concerns and said the deal would not create significant entry barriers or substantially increase market power.

The commission subsequently approved the acquisition under Section 31(1)(d)(i) of the Competition Act, 2010.