The Competition Commission of Pakistan (CCP) has approved the acquisition of the liquid carbon dioxide (LCO₂) plant of Pakistan Oxygen Limited by Pak Arab Fertilizers Limited following completion of a Phase I merger review under the Competition Act, 2010.

The approval comes after Pak Arab Fertilizers submitted a pre-merger application seeking clearance to acquire the facility under an Asset Purchase Agreement signed on February 4, 2026. After reviewing the case, CCP authorized the transaction under Section 31 of the Competition Act.

Pak Arab Fertilizers, a wholly owned subsidiary of Fatima Fertilizer Company Limited, operates in the fertilizer and chemical sector, including manufacturing, import, export, and distribution. Pakistan Oxygen is a major industrial gases producer in the country, supplying oxygen, medical gases, welding products, and related equipment.

During its assessment, the CCP evaluated the potential impact of the deal on market structure, competition levels, and entry barriers. The regulator categorized the transaction as a horizontal merger, as both entities operate within overlapping segments of the industrial gases market.

However, the Commission concluded that the acquisition would only lead to a marginal change in market share and would not significantly alter competitive dynamics. It found no indication that the deal would create dominant positioning, restrict new entrants, or reduce competition in any meaningful way.

The CCP further noted that the transaction is unlikely to distort market conditions or result in undue market power for the acquiring party. Accordingly, the merger was cleared under Section 31(1)(d)(i) of the Competition Act, 2010.

The approval reflects CCP’s broader approach of facilitating investment and corporate restructuring while ensuring that competition remains fair and consumer interests are protected.