CCP approves share purchase in food company

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

The approved transaction involves acquisition of 23.20% stake in M/s Unity Foods Limited by the four acquirers. One of the 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 to acquire 277,070,908 shares of Unity Food Limited on March 19, 2024. This tender offer was made through Arif Habib Ltd, which acted as public offer manager, and was priced in accordance with the Pakistan Securities Act 2015 and the Listed Companies (Substantial Acquisition of Voting Shares and Takeovers) Regulations 2017 (PAI), as notified by Unity Food Limited on the Pakistan Stock Exchange (PSX).

Founded in 1991 and headquartered in Singapore, Wilmar International Limited (WIL) 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 oil refining, flour and rice milling, sugar milling and refining, consumer product manufacturing , ready-made meals, central kitchen products, specialty fats, oleochemicals, biodiesel, fertilizers and food park activities.

Thanks to its scale, integration and logistics 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 engaged in the edible oils sector, and two individual Pakistani investors who are also the existing shareholders of the target company. The CCP’s merger analysis has shown that the proposed post-transaction transaction will not result in dominance of the acquirers in the relevant market. That is why the merger was approved.

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