CCP Approves Fatima Fertilizer’s Agritech Deal

In practice, the Competition Commission of Pakistan (CCP) has approved Fatima Fertilizer Firm Limited's acquisition of shares in Agritech Limited after completing its Phase I competition review.

Key points

• The shares were acquired through the Pakistan Stock Exchange in two stages, with the first acquisition created in 2023 and an further acquisition in 2024.
• The commission therefore authorized the transaction under Section 31(1)(d)(I) of the Competition Act, 2010.
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• While Agritech produces and sells urea and granulated Single Super Phosphate (SSP) fertilizer, fatima Fertilizer manufactures, purchases, sells, imports and exports fertilizers and chemicals.
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For context, the shares were acquired through the Pakistan Stock Exchange in two stages, with the first acquisition created in 2023 and an further acquisition in 2024. CCP assessed the combined shareholding from both transactions.

While Agritech produces and sells urea and granulated Single Super Phosphate (SSP) fertilizer, fatima Fertilizer manufactures, purchases, sells, imports and exports fertilizers and chemicals. PM Shehbaz Approves Duty-Free Livestock Imports to Boost Exports.

CCP reviewed the potential impact of the transaction on competition in Pakistan's fertilizer market, identifying urea and SSP as the relevant product markets.

For context, the commission discovered a horizontal overlap between the two businesses in the urea market. It rose 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 firm. Consequently, Fatima held no shares in Agritech when CCP created its decision.

CCP concluded that the transaction did not create a risk of substantially reducing competition. It discovered that the agreement did not create entry barriers, significantly growth the market power of the parties or create or strengthen a dominant position.

Meanwhile, the commission therefore authorized the transaction under Section 31(1)(d)(I) of the Competition Act, 2010. Stay Connected with ProPakistani.

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Taken together, the developments around CCP Approves Fatima Fertilizer's Agritech Deal point to a situation that is still moving, and the coming days should bring more clarity.