The Competition Commission of Pakistan (CCP) has approved the acquisition of the animal nutrition and health business of Dutch company DSM B.V. by Swiss-backed investment vehicles, finding that the transaction is unlikely to harm competition in Pakistan.

The approval followed a Phase-I review under the Competition Act, 2010. DSM B.V. is a wholly owned subsidiary of Swiss-based DSM-Firmenich AG.

As part of the transaction, DSM B.V. will separate its animal nutrition and health operations into two businesses. The acquiring investment vehicles, incorporated in the Netherlands and the United States and backed by CVC Fund IX, will obtain controlling stakes and voting rights in both entities.

The business has operations in Pakistan through DSM-Firmenich Pakistan, offering products and services including vitamins, carotenoids, premixes, performance solutions, precision services, and aroma ingredients for the animal nutrition sector.

The CCP found that the acquiring entities and their controlled portfolio companies currently have no presence in Pakistan’s relevant product markets served by the DSM business.

As a result, the commission identified no horizontal overlap or vertical relationship between the parties in Pakistan and concluded that the acquisition would not materially increase market concentration or restrict competition.

The regulator also determined that the transaction was unlikely to create significant entry barriers, strengthen market power, or substantially lessen competition in the local market.

The CCP said its clearance provides regulatory certainty for the transaction while supporting investment, business expansion, and competitive activity in Pakistan.