ISLAMABAD, August 20: The Competition Commission of Pakistan (CCP) has granted approval for the merger of HA Fibres (Private) Limited (HAFL) with and into Husnain Textile Mills (Private) Limited (HTML), a move set to consolidate two players in Pakistan’s yarn production sector.
The proposed transaction involves the amalgamation of HAFL, incorporated in 2006, with HTML, a company established in 2004. Both companies are engaged in the manufacturing and sale of yarn, specifically in the cotton polyester segment.
Following an in-depth review, the CCP identified the relevant market as “Yarn – Cotton Polyester” within Pakistan. After evaluating the potential effects of the merger, the Commission concluded that the transaction would not substantially lessen competition in the market. The combined market share of both companies remains modest, and the merger will not create or strengthen a dominant position within the industry. Additionally, the Commission determined that the merger does not introduce significant barriers to entry for other competitors.
As a result, the CCP authorised the merger under Section 31 of the Competition Act, 2010, allowing the companies to proceed with the transaction.
