THE Competition Commission of Pakistan has approved the proposed acquisition of the liquid carbon dioxide plant of Pakistan Oxygen Limited by Pak Arab Fertilisers Limited, following a Phase-I review conducted under the Competition Act, 2010, as per a press release.
Pak Arab Fertilisers Limited submitted a pre-merger application to the Commission under Section 11 of the Competition Act, seeking approval to acquire Pakistan Oxygen Limited’s liquid carbon dioxide plant.
Pak Arab Fertilisers Limited, a wholly owned subsidiary of Fatima Fertiliser Company Limited, is engaged in the manufacturing, production, import, export and sale of fertilisers and chemicals. Pakistan Oxygen Limited is a longstanding industrial enterprise engaged in the manufacture of industrial and medical gases, welding electrodes and the marketing of medical equipment.
During its review, the Commission assessed the likely impact of the transaction on market structure, competition dynamics, and market concentration. The Commission observed that the transaction involves the acquisition of a specific production asset and constitutes a horizontal merger because both the acquiring group and the target operate in the same relevant market. However, the resulting increase in market share would be limited and would not materially alter competitive conditions in the market.