Pakistan’s competition commission approves merger of eight retail firms

The Competition Commission of Pakistan (CCP) has granted approval for the consolidation of eight single-member retail companies into Stylo (Private) Limited, one of the country's leading footwear and fashion retailers.

The approved merger brings AR Corporation, Khadija Enterprises, Khushi Associates, Fatima Hussain Enterprises, Massab Enterprises, Laiba Corporation, Muhammad Umer Traders, and Munawar Hussain Associates under the Stylo umbrella. The transaction, part of an internal corporate restructuring, will be executed through share swaps, with new shares of Stylo issued to shareholders of the merging entities.

A CCP assessment found the transaction constitutes a horizontal merger but noted that, due to common ownership and the intra-group nature of the deal, market control and business strategy remain unchanged.

Stylo and the merging firms together hold a modest market share across the relevant sectors of footwear, apparel, fragrances, and accessories. The Commission determined the merger is unlikely to result in competition concerns or the creation of a dominant position, approving the transaction under Section 31 of the Competition Act, 2010.