CCP Approves Stylo’s Merger with Eight Sister Companies

The Competition Commission of Pakistan (CCP) has granted approval for the proposed merger of eight single-member retail companies into Stylo (Private) Limited. The approved transaction consolidates AR Corporation, Khadija Enterprises, Khushi Associates, Fatima Hussain Enterprises, Massab Enterprises, Laiba Corporation, Muhammad Umer Traders, and Munawar Hussain Associates with and into Stylo (Pvt.) Limited—one of Pakistan’s leading retailers of footwear, apparel, and fashion accessories. The merger is part of an internal corporate restructuring and will be executed through share swaps, with new shares of Stylo issued to shareholders of the merging entities. CCP’s assessment found that the transaction constitutes a horizontal merger; however, given the intra-group nature and common ownership, the transaction does not involve any change in market control or business strategy. Stylo and the merging companies collectively hold a modest market share across relevant product markets of footwear, apparel, fragrances, and accessories, which remains unchanged post-merger. The Commission concluded that the merger is unlikely to raise any competition concerns or result in the creation or strengthening of a dominant position. It is, therefore, authorized under Section 31 of the Competition Act, 2010.