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 acquired through the Pakistan Stock Exchange in two stages, with the first acquisition made in 2023 and an additional acquisition in 2024. CCP assessed the combined shareholding from both transactions.
Fatima Fertilizer manufactures, purchases, sells, imports and exports fertilizers and chemicals, while Agritech produces and sells urea and granulated Single Super Phosphate (SSP) fertilizer.
CCP reviewed the potential impact of the transaction on competition in Pakistan’s fertilizer market, identifying urea and SSP as the relevant product markets.
The commission found a horizontal overlap between the two companies in the urea market, which increased their combined market share. Fatima Fertilizer had no market share in the SSP market, leaving Agritech’s position there unchanged.
During the review, Fatima Fertilizer informed CCP that it had sold its entire shareholding in Agritech and no longer intended to pursue control of the company. As a result, Fatima held no shares in Agritech when CCP made its decision.
CCP concluded that the transaction did not create a risk of substantially reducing competition. It found that the deal did not create entry barriers, significantly increase the market power of the parties or create or strengthen a dominant position.
The commission therefore authorized the transaction under Section 31(1)(d)(i) of the Competition Act, 2010.
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