Deal Approved After Phase-I Competition Review
The Competition Commission of Pakistan has approved the acquisition of Pakistan Oxygen Limited’s liquid carbon dioxide plant by Pak Arab Fertilizers Limited.
The approval came after a Phase-I review under the Competition Act, 2010. The transaction was examined to assess its possible impact on competition, market structure and consumer interest.
Pak Arab Fertilizers had submitted a pre-merger application to the CCP under Section 11 of the Competition Act. The company sought permission to acquire the liquid CO2 production asset from Pakistan Oxygen Limited under an Asset Purchase Agreement signed on February 4, 2026.
After reviewing the details, the Commission approved the deal under Section 31 of the Act.
CCP Finds No Major Threat to Market Competition
The CCP said the proposed transaction involves the acquisition of a specific production asset. It also noted that the deal falls under the category of a horizontal merger because both parties are connected to the same relevant market.
However, the Commission found that the increase in market share would remain limited. It said the acquisition would not significantly change competitive conditions in the liquid carbon dioxide market.
The regulator also concluded that the deal would not create new entry barriers for other businesses. It would also not give the parties enough market power to control prices or restrict competition.
According to the CCP, there was no evidence that the transaction would reduce competition, create a dominant position, or strengthen an existing dominant position in the market.
Approval Supports Investment While Protecting Fair Competition
Pak Arab Fertilizers Limited is a wholly owned subsidiary of Fatima Fertilizer Company Limited. The company is involved in the production, sale, import and export of fertilizers and chemicals.
Pakistan Oxygen Limited is a major industrial company in Pakistan. It manufactures industrial gases, medical gases and welding electrodes. It also markets medical equipment.
The CCP said the approval reflects its role in supporting lawful business transactions and investment activity. At the same time, the regulator said it remains committed to protecting fair competition, market efficiency and consumer welfare.
The decision shows that merger approvals can move forward when transactions do not harm competition or create unfair market dominance.
