ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the acquisition of a 50 percent shareholding in Fatima Euricom Rice Mills (Pvt) Ltd by Euricom S.P.A, a leading Italian agribusiness entity.
According to a press release issued on Thursday, the acquisition, under the Share Purchase Agreement, demonstrates a major advancement in bringing direct foreign investment to Pakistan, as international agribusiness leaders increasingly recognize Pakistan’s untapped agricultural potential.
Euricom S.P.A, with an international mission in agribusiness, is renowned for its expertise in the processing, farming, and trading of rice products across global markets. By acquiring a substantial stake in Fatima Euricom Rice Mills, a Pakistan-based company engaged in paddy rice procurement and processing, Euricom S.P.A aims to explore Pakistan’s rich agricultural potential. The partnership is set to further boost Pakistan’s rice export capacity, allowing the country to expand its footprint in the international rice trade.
The CCP’s Phase I competition assessment of this merger highlights the substantial economic benefits of the proposed transaction. Through this transaction, the inflow of capital reflects growing investor confidence in Pakistan’s economic prospects and demonstrates the significance of a robust merger clearance regime in facilitating international business ventures.
The CCP identified the relevant product market as the ‘cultivation, processing, and packaging of Basmati Rice.’ Although Fatima Euricom Rice Mills has not yet started operations, it is set to have an operational capacity of 30,000 tons.
The transaction is expected to encourage healthy competition within the industry, thereby fostering growth and creating opportunities for new entrants.
