The Competition Committee in Pakistan (CCP) has agreed to integrate Olympia Synthetics Limited (OSL) with Olympia Industries (Private) Limited (Oil) under Article 11 of the Competition Law, 2010. The transaction will be implemented by arranging stock exchange.
OSL, a company that is not listed for the public, specializes in producing loose ritual threads and recycled polyester fibers, while oil, which is a private limited company, makes an artificial rug, a sensitive polyester, artificial spinning, and love fabric.
The merger includes combining these two integrated companies vertically, both of which are controlled by the same shareholders. OSL currently provides almost all its production to oil.
CCP assessed the potential impact of the inclusion of competition in the markets of bulb threads and recycled polyester fibers inside Pakistan. Based on this analysis, the committee concluded that the merger will not lead to the creation or strengthening of the dominant market position.
CCP approved the transaction under Article 31 (1) (d) (1) of the Competition Law, 2010, with a focus that although the merger is cleansed from the competition perspective, things go beyond the CCP range under the supervision of relevant regulatory authorities.