KARACHI: The Competition Commission of Pakistan (CCP) has approved the acquisition of a liquid carbon dioxide (LCO2) plant owned by Pakistan Oxygen Limited by Pak Arab Fertilizers Limited, following a Phase-I review under the Competition Act, 2010.
The transaction was notified under Section 11 of the Act through a pre-merger application seeking approval for the purchase under an asset purchase agreement dated February 4, 2026. The regulator cleared the deal under Section 31 of the legislation after completing its competition assessment.
In its review, the commission assessed the impact of the transaction on market structure, competition dynamics and concentration levels. It noted that the deal involves the acquisition of a specific production asset and constitutes a horizontal overlap, as both parties operate in the same relevant market. However, it concluded that the change in market share would be limited and would not materially alter competitive conditions.
The regulator further said the transaction was unlikely to create barriers to entry or materially enhance market power of the combined entity. It found no evidence that the acquisition would substantially lessen competition, strengthen a dominant position or distort market conditions.
Pak Arab Fertilizers, a wholly owned subsidiary of Fatima Fertilizer Company Limited, operates in the production and trade of fertilisers and chemicals, including manufacturing, import and export activities. Pakistan Oxygen is an industrial gases producer with operations in industrial and medical gases, welding electrodes and related medical equipment marketing.
The Commission therefore determined that the deal would not result in the creation or strengthening of a dominant position under the Competition Act, 2010, and granted approval under Section 31(1)(d)(i).
