Fatima Euricom Rice Mills (Pvt) Ltd by M/s Euricom SPA: CCP grants approval of acquisition of 50pc shareholding

ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval for the acquisition of a 50 percent shareholding in M/s Fatima Euricom Rice Mills (Pvt) Ltd by M/s Euricom SPA, a leading agribusiness entity based in Italy.

This acquisition, under the Share Purchase Agreement, represents a major advancement in attracting Foreign Direct Investment (FDI) to Pakistan, as global agribusiness leaders increasingly recognize the country’s untapped agricultural potential.

Euricom S.P.A, with a global mission in agribusiness, is renowned for its expertise in the farming, processing, and trading of rice products across international markets.

By acquiring a substantial stake in Fatima Euricom Rice Mills, a Pakistan-based company engaged in paddy rice procurement and processing, Euricom S.P.A aims to tap into Pakistan’s rich agricultural potential. The collaboration is set to further enhance Pakistan’s rice export capacity, allowing the country to expand its footprint in the global rice trade.

The CCP’s Phase I competition assessment of this merger highlights the substantial economic benefits of the proposed transaction. Through this transaction, the inflow of capital reflects growing investor confidence in Pakistan’s economic prospects and demonstrates the importance of a robust merger clearance regime in facilitating international business ventures.

The CCP identified the relevant product market as the ‘cultivation, processing, and packaging of Basmati Rice.’ Although Fatima Euricom Rice Mills has not yet commenced operations, it is set to have an operational capacity of 30,000 tons.

The transaction is expected to promote healthy competition within the industry, thereby fostering growth and creating opportunities for new entrants.

Copyright Business Recorder, 2024