CCP approves share acquisition in food company

ISLAMABAD: The Competition Commission of Pakistan (CCP) has granted approval to the share acquisition in a Pakistani food company by four acquirers, including a Singapore-based investment holding company.

The approved transaction involves the acquisition of a 23.20% shareholding in M/s Unity Foods Limited by the four acquirers. One of acquirers is M/s Wilmar Pakistan Holdings Pte. Limited, a wholly-owned subsidiary of M/s Wilmar International Limited, a Fortune 500 company incorporated in Singapore.

Wilmar Pakistan Holdings Pte Ltd (WPH) announced its plans on March 19, 2024, to acquire 277,070,908 shares of Unity Food Limited. This acquisition offer was made through Arif Habib Ltd, acting as the manager of the public offer, and was priced in compliance with Pakistan’s Securities Act 2015 and Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations 2017 (PAI), as disclosed by Unity Food Limited to the Pakistan Stock Exchange (PSX).

Wilmar International Limited (WIL), established in 1991 and headquartered in Singapore, is a prominent agribusiness group in Asia. WIL and its group companies (Wilmar Group) are engaged in various business activities, including oil palm cultivation, oilseed crushing, edible oils refining, flour and rice milling, sugar milling and refining, manufacturing of consumer products, ready-to-eat meals, central kitchen products, specialty fats, oleochemicals, biodiesel, fertilizers, and food park operations.

With its scale, integration, and logistical advantages, the Wilmar Group can capture margins at every stage of the value chain, leading to operational synergies and cost efficiencies. The other three acquirers are M/s Unity Wilmar Agro (Private) Limited, a private limited company incorporated in Pakistan and engaged in the edible oils business, and two individual Pakistani investors who are also the existing shareholders of the target company. The CCP’s merger analysis revealed that the proposed transaction will not result in dominance of the acquirers in the relevant market, post-transaction. Therefore, the merger has been authorized.

This approval reflects the confidence of international investors in Pakistan’s economy and its potential for growth. Wilmar International’s investment in Unity Foods reaffirms its commitment to Pakistan’s economy, showcasing confidence in the resilience and potential of the country’s economic landscape. This merger approval is expected to enhance consumer choice and spur innovation in the food business sector, ultimately benefiting Pakistani consumers.