On Tuesday, the Competition Commission of Pakistan (CCP) approved the merger of Junaid Jamshed (Private) Limited (JJPL) with U&I Garments (Private) Limited (U&I), according to a CCP statement. The two companies jointly submitted an application to seek CCP’s authorization for U&I to acquire JJPL’s entire business through a share swap arrangement. Following the completion of the merger, JJPL will cease to exist as a separate legal entity, and its assets, liabilities, and operations will be fully integrated into U&I.
To assess the potential impact on competition, the CCP carried out a Phase-I competition evaluation. This assessment focused on relevant markets, including ready-made apparel, footwear, accessories, fragrances, and cosmetics, to determine whether the merger would lead to the creation or strengthening of a dominant market position.
The CCP noted that the transaction was mainly an intra-group consolidation, as U&I already holds a 25% stake in JJPL. Additionally, the Commission concluded that the merger would not substantially lessen competition in any of the relevant markets, due to factors such as the presence of numerous competitors, low barriers to entry, and limited horizontal overlaps.
As a result, the CCP authorized the merger under Section 31(1)(d)(i) of the Competition Act, 2010.
