The Competition Commission of Pakistan (CCP) has given the green light to Euricom S.P.A, a prominent Italian agribusiness, for acquiring a 50% stake in Fatima Euricom Rice Mills (Pvt) Ltd. This acquisition, formalized under a Share Purchase Agreement, is a significant milestone in boosting foreign direct investment (FDI) in Pakistan. The move underscores the growing recognition of Pakistan’s largely untapped agricultural potential by global agribusiness giants.
Euricom S.P.A is internationally recognized for its extensive expertise in cultivating, processing, and trading rice products. With this strategic acquisition, the company seeks to leverage Pakistan’s abundant agricultural resources by partnering with Fatima Euricom Rice Mills, which specializes in paddy rice procurement and processing.
This collaboration is poised to enhance Pakistan’s rice export capabilities, opening new avenues for the country in the global rice market. The CCP’s Phase I competition review emphasized the transaction’s significant economic advantages and highlighted how it aligns with investor confidence in Pakistan’s future growth.
Although Fatima Euricom Rice Mills is yet to commence operations, it is expected to achieve an operational capacity of 30,000 tons, contributing to the country’s export potential. The CCP identified the relevant product market as the ‘cultivation, processing, and packaging of Basmati Rice.’
The transaction not only fosters healthy competition in Pakistan’s agribusiness sector but also creates new opportunities for industry growth and potential entrants. This development highlights the essential role of a transparent merger clearance process in facilitating international business operations in the country.
