In a significant development, the Competition Commission of Pakistan (CCP) has granted approval for the merger of First UDL Modaraba, a listed company, with UDL International Limited, a public unlisted company.
The green light from CCP not only paves the way for the merger. But it also sets the stage for the listing of UDL International Limited on the Pakistan Stock Exchange. This is a move anticipated to have far-reaching implications for both entities.
First UDL Modaraba, established under the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, operates from its registered office in Karachi. On the other hand, UDL International Limited, also headquartered in Karachi, is involved in a diverse range of activities. These activities include the sale, purchase, import and export. More activities including like general trading, and the supply of general orders and commodity products.
As part of the merger process, UDL International Limited is set to transfer the Musharika portfolio of First UDL Modaraba to its wholly owned subsidiary. UDL Financial Services Limited (UDLFSL). This strategic move is expected to streamline operations and enhance efficiency within the merged entity.
The phase 1 review conducted by CCP concluded that the proposed merger would not result in the dominance of UDL International Limited in the relevant market post-transaction. Moreover, with this determination, the CCP officially authorized the merger. Emphasizing the positive impact it is likely to have on the corporate landscape.
Furthermore, the approval of this merger represents a significant milestone. This approval also underscores the commitment of both entities to growth and stability. In a statement, the CCP highlighted the positive contribution the merger is expected to make to the overall economic landscape.
As the merger progresses, stakeholders will be closely monitoring the developments, anticipating a harmonious integration. This will set the stage for sustained growth and success in the years to come.
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