Citi Pharma Limited (PSX: CPHL) has received regulatory approval to acquire 100 percent of Pakheim International Pharma, making the pharmaceutical company a wholly owned subsidiary of Citi Pharma.
The Competition Commission of Pakistan (CCP) approved the transaction after reviewing its potential impact on competition under the Competition Act, 2010.
The regulator found that the acquisition would not significantly affect competition in Pakistan’s pharmaceutical market, as Pakheim has a limited market presence.
The two companies overlap in three product categories: antibiotic formulations, painkiller formulations and anti-diabetic medicines. However, the CCP said the overlap was insignificant because Pakheim holds a negligible market share.
The companies do not overlap in the anti-ulcer and anti-allergic medicine segments, according to the commission’s assessment.
The CCP also examined the relationship between Citi Pharma’s production of active pharmaceutical ingredients (APIs) and Pakheim’s use of these ingredients to manufacture medicines.
The regulator found that Pakheim had not purchased any APIs from Citi Pharma during the previous two years. It concluded that the transaction would not create significant competition concerns.
The commission said the acquisition would not create barriers for new entrants, restrict existing competitors or establish a dominant market position.
Citi Pharma is a listed pharmaceutical company involved in manufacturing and selling APIs, pharmaceutical formulations, medical chemicals, botanical products and nutraceuticals.
Pakheim International Pharma is a privately held company engaged in manufacturing and selling pharmaceutical products.
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