Karachi: The Competition Commission of Pakistan (CCP) has approved the acquisition of specific assets of Crescent Cotton Mills Limited by Sultan Spinning Industries, marking a significant development in the country’s yarn industry. The transaction involves the transfer of land, equipment, and machinery, setting the stage for increased competition and consumer benefits in the yarn market.

According to a statement by Competition Commission of Pakistan, the relevant product market was identified as ‘yarn,’ categorized into cotton, synthetic, and blended yarn. The commission noted that Crescent Cotton Mills Limited holds a minimal market share, which is expected to decline further as the acquired assets will no longer support its operations.

Sultan Spinning Industries’ entry into the market is anticipated to enhance competition by adding a new player to the yarn sector. This development is expected to lead to more competitive pricing, foster innovation, and expand product availability, benefiting both consumers and the market.

The CCP’s Phase I assessment determined that the acquisition does not threaten to reduce competition. Instead, it supports increased consumer choice and promotes fair market practices. The transaction involves asset transfer rather than market share consolidation, thus avoiding new entry barriers for potential competitors.

Sultan Spinning Industries, a private limited company in Pakistan, plans to commence operations in yarn manufacturing and sales. Crescent Cotton Mills, a publicly traded entity, will continue its involvement in the yarn industry despite the asset transfer.

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