Islamabad: The Competition Commission of Pakistan (CCP) has approved the acquisition of a 50 percent shareholding in M/s. Fatima Euricom Rice Mills (Pvt) Ltd by M/s. Euricom S.P.A, an established agribusiness company from Italy. This significant move is anticipated to enhance Pakistan’s rice exports and attract more foreign direct investment, marking a positive development in the nation’s agricultural sector.
According to Competition Commission of Pakistan, the Share Purchase Agreement between Euricom S.P.A and Fatima Euricom Rice Mills represents a strategic effort by the Italian firm to leverage Pakistan’s agricultural resources. Euricom S.P.A is known for its global presence in the agribusiness sector, specializing in the farming, processing, and trading of rice. This partnership aims to utilize the extensive paddy rice procurement and processing capacity of Fatima Euricom Rice Mills, which is expected to bolster Pakistan’s position in the international rice market.
The CCP’s initial competition assessment for this merger outlined substantial economic benefits, emphasizing the deal’s potential to bring considerable foreign capital into Pakistan. This investment is seen as a testament to growing confidence in Pakistan’s economic environment and underscores the critical role of effective regulatory frameworks in encouraging international business collaborations.
The relevant market for this transaction has been identified by the CCP as the ‘cultivation, processing, and packaging of Basmati Rice.’ Despite Fatima Euricom Rice Mills not yet being operational, it plans to have a significant operational capacity of 30,000 tons. The commencement of its operations, fueled by this new partnership, is expected to stimulate competition in the industry, promote growth, and provide opportunities for other market entrants.