Competition Commission of Pakistan Approves Merger Between U&I Garments and Junaid Jamshed (Private) Limited

The Competition Commission of Pakistan (CCP) has approved the merger proposal between U&I Garments and Junaid Jamshed (Private) Limited. This decision comes after a joint request from both companies, which included a share swap agreement for U&I Garments to acquire the entire business of Junaid Jamshed.

Following this merger, Junaid Jamshed will cease to exist as a separate entity, with all of its operations, assets, and liabilities fully integrated into U&I Garments. The Junaid Jamshed brand, known for its strong market presence, will now grow alongside U&I Garments, aiming for further development in the fashion industry.

The Competition Commission of Pakistan, after reviewing the merger, concluded that it would not create a dominant position in any relevant market. Sectors such as ready-made garments, footwear, accessories, perfumes, and cosmetics are not expected to face any competitive issues as a result of this merger.

This is primarily because U&I Garments already holds a 25% stake in Junaid Jamshed, and the merger shows limited horizontal overlap between the two companies. The Commission emphasized that multiple competitors remain in the market, ensuring that competition will continue to be balanced post-merger, aided by the integration benefits and collaboration between the two firms.

Post-merger, Junaid Jamshed’s brand identity will be preserved, and the direction of its new operations is expected to be enhanced. The primary objective of the merger is to boost production capacity and expand the product offerings in the market, enabling both companies to succeed in the growing fashion market.

This deal marks a significant consolidation in Pakistan’s fashion industry, setting the stage for both major companies to embark on a new chapter in the sector.