CCP Approves UAE FZE’s Shareholding in Pakistani Aircraft Maintenance Firm

authorizes acquisition by UAE firm

The (CCP) has authorized the acquisition of a shareholding in M/s. Northern Technik (Private) Limited by UAE-based M/s. International Business Company FZE, paving the way for fresh foreign direct investment (FDI) in Pakistan’s aviation services sector.

M/s. International Business Company FZE, incorporated in the United Arab Emirates on September 7, 2010, operates as an importer, exporter, and general trading enterprise, with additional consultancy services in business, marketing, and management.

The target company, M/s. Northern Technik (Private) Limited, incorporated in Pakistan on September 24, 2018, provides aircraft line maintenance services to commercial airlines operating in the country. The seller, M/s. SPARS (Private) Limited, is a diversified local entity with interests spanning real estate, aviation, telecom, pharmaceuticals, information technology, construction, and engineering services.

Following a Phase-I competition assessment conducted under Section 11 of the Competition Act, 2010, the Commission determined that the transaction is unlikely to raise any competition concerns.

The CCP defined the relevant market as aircraft line maintenance services in Pakistan, noting that it remains fragmented, with multiple service providers, including airlines maintaining in-house capabilities alongside independent operators. The Commission observed that there is no horizontal overlap between the activities of the acquirer and the target.

Consequently, the transaction will not alter the market structure or the existing market share of the target undertaking. Based on its analysis, the CCP concluded that the transaction does not create or strengthen a dominant position, nor does it pose risks of market foreclosure, collusion, or exclusionary conduct.

The Commission further noted that the transaction is not expected to create entry barriers or significantly enhance the market power of the parties. Accordingly, the transaction has been authorized under Section 31(1)(d)(i) of the Competition Act, 2010.

The CCP reiterates its commitment to facilitating investment through efficient and transparent merger review processes, while ensuring that market competition remains robust, fair, and conducive to economic growth.