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June 4, 2026
Pakistan’s competition regulator has cleared Pak Arab Fertilizers’ acquisition of a Pakistan Oxygen production asset, finding no significant impact on market competition.
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The Competition Commission of Pakistan (CCP) has approved Pak Arab Fertilizers Limited’s proposed acquisition of the liquid carbon dioxide (LCO₂) plant owned by Pakistan Oxygen Limited, concluding that the transaction is unlikely to disrupt competition in the market.
According to a statement issued by the Commission, Pak Arab Fertilizers submitted a pre-merger application under Section 11 of the Competition Act, 2010, seeking approval for the acquisition under an Asset Purchase Agreement signed on February 4, 2026. Following a Phase-I review, the CCP authorized the transaction under Section 31 of the law.
Pak Arab Fertilizers, a wholly owned subsidiary of Fatima Fertilizer Company Limited, operates in the production, import, export and sale of fertilizers and chemicals. Pakistan Oxygen Limited is a long-established industrial company engaged in manufacturing industrial and medical gases, welding electrodes and supplying medical equipment.
During its assessment, the CCP reviewed the transaction’s potential effects on market concentration, competitive dynamics and overall market structure. The Commission determined that the acquisition qualifies as a horizontal merger because both parties are active in the same relevant market segment.
Despite this overlap, regulators found that the deal would result in only a marginal increase in market share and would not substantially change competitive conditions. The Commission stated that the acquisition would not materially affect competition or alter the existing balance within the sector.
The CCP also concluded that the transaction would not create barriers for new entrants or significantly strengthen the market position of the parties involved. According to the Commission’s statement, no evidence suggested the deal would reduce competition, establish market dominance or distort competitive dynamics.
As a result, the regulator approved the acquisition under Section 31(1)(d)(i) of the Competition Act, 2010. The decision reflects the Commission’s approach of facilitating legitimate investment and business activity while maintaining safeguards for competition, market efficiency and consumer interests.
