Citi Pharma Limited has secured approval from the Competition Commission of Pakistan (CCP) to take full ownership of Pakheim International Pharma (Pvt.) Limited.

Under the deal, Pakheim will become a wholly owned subsidiary of Citi Pharma. The commission cleared the acquisition after completing its initial competition review under the Competition Act, 2010.

The CCP assessed the impact of the transaction across five categories of medicines: antibiotics, anti-ulcer drugs, painkillers, anti-allergic medicines and anti-diabetic drugs.

The regulator found that both companies operate in three of these segments, covering antibiotics, painkillers and anti-diabetic medicines. However, it said Pakheim’s small market share meant the acquisition would have a negligible impact on competition.

The companies have no overlapping operations in anti-ulcer and anti-allergic formulations, the commission said.

The CCP also reviewed whether the acquisition could affect the supply of active pharmaceutical ingredients (APIs), which are used to manufacture medicines. Citi Pharma produces these ingredients, while Pakheim uses them in pharmaceutical formulations.

However, the regulator found that Pakheim had not purchased APIs from Citi Pharma in the past two years. It concluded that the relationship between their operations did not raise significant competition concerns.

According to the commission, the acquisition is unlikely to make it harder for new companies to enter the market or prevent existing pharmaceutical businesses from competing.

The CCP concluded that the transaction would not substantially reduce competition or create or strengthen a dominant position in any of the markets examined.

Citi Pharma is a listed company that manufactures and sells pharmaceutical ingredients, medicines, medical chemicals, botanical products and nutraceuticals. Pakheim International Pharma is a privately held company involved in manufacturing and selling pharmaceutical products.