ISLAMABAD: The merger of Millat Tractors Limited (MTL) and Millat Equipment Limited (MEL) has been approved by the Competition Commission of Pakistan (CCP) under a Scheme of Arrangement sanctioned by the Lahore High Court.
Additionally, the dissolution of MEL and the subsequent establishment of MTL will take place once the court gives its approval.
Millat Tractors Limited is a Pakistani public company that focuses on producing and selling agricultural tractors (of the Massey Ferguson 300 series), forklift trucks, diesel engines, diesel generator sets, and various other industrial and agricultural instruments.
The public limited firm Millat Equipment Limited caters solely to the Massey Ferguson 300 series of tractors that are produced by MTL. Its main products include gears, shafts, hydraulic pumps, and engine balancers.
According to the CCP’s merger analysis, the Pakistani market for “Tractor Parts” is the most relevant. The merger will have no impact on the market share of the companies involved because MEL is the only supplier of parts for Massey Ferguson 300 series tractors. In addition, competition will be impacted because the purchase will not establish or strengthen a dominant position in the relevant market.
The CCP is demonstrating its dedication to promoting improved product quality and more efficient production processes with this approval. As a result of the merger, MTL will have more assets to work with, which should boost its competitiveness, operational efficiencies, and ability to take advantage of economies of scale.
