Fauji Foods Limited (FFL) has successfully concluded the acquisition of Fauji Foundation’s entire equity stake in Fauji Infraveast Foods Limited, along with its cereals business operating under the renowned brand name ‘Fauji Cereals’.
The strategic decision, as announced in a filing on the Pakistan Stock Exchange (PSX), received approval from FFL’s Board of Directors on November 21, 2023, and subsequently from the shareholders on December 28, 2023.
In a statement to the PSX, the company expressed its strategic vision behind the acquisition, citing it as a pivotal step towards establishing a consumer food vertical within the group. This move aligns seamlessly with FFL’s overarching ambition to emerge as a leading force in the fast-moving consumer goods (FMCG) sector in Pakistan.
The merger brings together two of Pakistan’s most iconic brands, positioning Fauji Foods Limited as one of the most diversified food companies in the country. The integration is expected to elevate FFL’s status by consolidating its portfolio with the inclusion of ‘Nurpur’, its beloved dairy brand, and ‘Fauji Cereals’, Pakistan’s largest cereal brand.
With the acquisition of Fauji Infraveast Foods Limited, FFL gains access to a state-of-the-art Pasta plant, further expanding its product range across various culinary occasions.
Earlier this week, on Tuesday, the Competition Commission of Pakistan (CCP) granted approval for the acquisition, following a comprehensive review under the Competition Act of 2010. The approval underscores the regulatory body’s satisfaction that the merger does not pose any adverse implications for market competition.
The completion of this acquisition signifies a significant milestone for Fauji Foods Limited, positioning the company for sustained growth and market leadership in Pakistan’s dynamic FMCG landscape.