The Competition Commission of Pakistan (CCP) has approved Fatima Fertilizer Company Limited’s acquisition of shares in Agritech Limited after completing its Phase I competition review.

The shares were purchased through the Pakistan Stock Exchange in two transactions, with the first taking place in 2023 and the second in 2024. CCP considered the combined shareholding from both acquisitions while reviewing the transaction.

Fatima Fertilizer manufactures, purchases, sells, imports and exports fertilizers and chemicals. Agritech produces and sells urea and granulated Single Super Phosphate (SSP) fertilizer.

CCP examined the transaction’s potential impact on competition in Pakistan’s fertilizer sector and identified urea and SSP as the relevant product markets.

The review found a horizontal overlap between Fatima Fertilizer and Agritech in the urea market, resulting in a higher combined market share. However, Fatima Fertilizer had no market share in the SSP market, leaving Agritech’s position in that segment unchanged.

During the proceedings, Fatima Fertilizer informed CCP that it had already sold its entire shareholding in Agritech and no longer planned to acquire control of the company. The company therefore held no shares in Agritech when CCP issued its decision.

CCP determined that the transaction did not pose a risk of substantially reducing competition in the relevant markets. The commission found that the deal would not create entry barriers, materially increase market power or create or strengthen a dominant position.

Based on its assessment, CCP authorized the transaction under Section 31(1)(d)(i) of the Competition Act, 2010.