Approves Acquisition
The (CCP) has approved the proposed acquisition of the liquid carbon dioxide (LCO₂) plant of Pakistan Oxygen Limited by Pak Arab Fertilizers Limited. The approval followed a Phase-I review under the Competition Act, 2010.
Pak Arab Fertilizers Limited applied for pre-merger clearance under Section 11 of the Act, seeking to acquire the LCO₂ plant through an Asset Purchase Agreement dated February 4, 2026. Following competition assessment, the CCP authorized the transaction under Section 31 of the Act.
The Commission noted that the transaction involves a horizontal merger, as both entities operate in the same market sector. However, it concluded that the resulting increase in market share would be limited and would not significantly alter competitive conditions.
No evidence was found to suggest that the acquisition would lessen competition or create a dominant position. The CCP determined that the proposed transaction does not strengthen a dominant position within the meaning of the Competition Act, 2010, and granted approval under Section 31(1)(d)(i) of the Act.
The decision underscores the CCP’s commitment to facilitating legitimate business transactions while ensuring competition, market efficiency, and consumer welfare are protected.