Islamabad, Sep 27: Leading Italian agribusiness company Euricom S.P.A. has approved the purchase of a 50% stake in Fatima Euricom Rice Mills (Pvt) Ltd by the Competition Commission of Pakistan (CCP).
International agribusiness leaders are becoming more aware of Pakistan’s unrealized agricultural potential, and the acquisition, made possible by the Share Purchase Agreement, represents a significant step forward in attracting foreign direct investment to Pakistan, according to a news release released on Thursday. With an international agribusiness mission, Euricom S.P.A. is well-known for its proficiency in the cultivation, processing, and international trade of rice products.
Pakistan’s great agricultural potential is to be explored by Euricom S.P.A. with the acquisition of a significant stake in Fatima Euricom Rice Mills, a Pakistan-based firm involved in the procurement and processing of paddy rice. The collaboration is expected to increase Pakistan’s ability to export rice and enable the nation to increase its market share in the global rice trade.
The significant economic advantages of the proposed deal are highlighted in the CCP’s Phase I competition assessment of this merger. This deal shows how investor confidence in Pakistan’s economic prospects is improving, and it also highlights how important a strong merger clearance process is for promoting foreign commercial endeavors.
The CCP designated the “cultivation, processing, and packaging of Basmati Rice” as the pertinent product market. Fatima Euricom Rice Mills is scheduled to begin operations in the near future, with a 30,000-ton operational capacity. It is anticipated that the deal will promote healthy competition in the sector, which will lead to growth and provide doors for new players.
