CCP clears transaction: UAE firm to acquire stakes in MTML from Chinese investors

ISLAMABAD: UAE-based Velora Global Ventures-F.Z.C. is set to acquire shareholding in Pakistan’s listed textile manufacturer Masood Textile Mills Limited (MTML) from two Chinese investors after the Competition Commission of Pakistan (CCP) cleared the transaction at the Phase-I stage, Business Recorder has learnt.

The transaction involves acquisition of shares held by Shanghai Challenge Textile Company Limited and Zhejiang Xinao Industry Company Limited, both incorporated in China, pursuant to a Share Purchase Agreement dated July 27, 2026.

Velora Global Ventures was incorporated and registered with the Ajman Free Zone Authority on June 26, 2025. It is engaged in wholesale trading of textiles and clothing and commercial brokerage activities outside Pakistan.

According to the CCP order, Velora also has two associated companies — Gulf Textile Sourcing F.Z.C. and Zara Textile Trading F.Z.C. — engaged in downstream textile sourcing and trading, including international customer development and order coordination.

Masood Textile Mills, incorporated in Pakistan in 1984, manufactures and sells cotton and synthetic fibre yarn, knitted and dyed fabrics, and garments.

For its competition assessment, the CCP defined “Yarn and Knitted Fabric” as the relevant product market and Pakistan as the relevant geographic market.

A key factor in the assessment was that Velora had no market presence in Pakistan prior to the transaction, with a nil pre-merger market share. The CCP found that the acquisition was therefore not expected to materially change Masood Textile Mills’ output, domestic sales or market position.

The Commission also examined a potential vertical relationship arising from Velora’s international textile trading activities and MTML’s manufacturing operations. Given the nature and scope of their respective activities, it concluded that the relationship was not expected to raise competition concerns.

The CCP further found that the transaction was unlikely to substantially lessen competition, create or strengthen a dominant position, create entry barriers or significantly enhance the Acquirer’s market power.

The transaction was consequently authorised under Section 31(1)(d)(i) of the Competition Act, 2010.

The CCP clarified that its assessment was limited to competition review under Section 11 of the Act, while matters outside its jurisdiction remain subject to applicable laws, judicial orders and oversight of relevant regulatory bodies.

CCP continues to facilitate investment and economic activity through the timely and transparent review of mergers and acquisitions while ensuring that transactions do not harm competition. An effective merger-control regime provides regulatory certainty, supports foreign direct investment (FDI) and business expansion, and safeguards competitive markets and consumer interests in Pakistan.

Copyright Business Recorder, 2026