CCP approves Olympia Synthetics merger into Olympia Industries
ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval for the merger of M/s Olympia Synthetics Limited (OSL) with and into M/s Olympia Industries (Private) Limited (OIL) under Section 11 of the Competition Act, 2010.
The transaction involves merger of OSL, a public unlisted company engaged in the production of bulk filament yarn and recycled polyester fiber, with OIL, a private limited company that manufactures synthetic carpet, polyester felt, synthetic yarn, and knitted fabric. The transaction will be executed through a share swap arrangement.
As part of its assessment, the Commission analyzed the potential competitive effects of the transaction in the relevant product markets, namely bulk filament yarn and recycled polyester fiber, within Pakistan.
Given that both companies are vertically integrated and controlled by the same shareholders, and that OSL already supplies nearly all its production to OIL, the Commission determined that the merger would not result in the creation or strengthening of a dominant position in the relevant markets.
Accordingly, the CCP has authorized the proposed transaction under Section 31(1)(d)(i) of the Competition Act, 2010.
The Commission reiterates that while the transaction has been approved from a competition standpoint, any aspects falling outside CCP’s jurisdiction remain subject to applicable laws and oversight by relevant regulatory bodies.
