The Competition Commission of Pakistan (CCP) has approved the merger of Olympia Synthetics Limited (OSL) with Olympia Industries (Private) Limited (OIL) under Section 11 of the Competition Act, 2010. The transaction will be carried out through a share swap arrangement.
OSL, a publicly unlisted company, specialises in the production of bulk filament yarn and recycled polyester fiber, while OIL, a private limited company, owned by OSL, manufactures synthetic carpet, polyester felt, synthetic yarn, and knitted fabric.Â
The merger involves combining these two vertically integrated companies, both of which are controlled by the same shareholders. OSL currently supplies nearly all its production to OIL.
The CCP assessed the merger’s potential impact on competition in the markets for bulk filament yarn and recycled polyester fiber within Pakistan. Based on this analysis, the Commission concluded that the merger would not result in the creation or strengthening of a dominant market position.
The CCP has approved the transaction under Section 31(1)(d)(i) of the Competition Act, 2010, emphasizing that while the merger is cleared from a competition perspective, matters beyond the scope of the CCP will be subject to the oversight of relevant regulatory authorities.
