Pakistan clears Fatima Fertilizer's Agritech share deal — after seller exits
What's the deal? The Competition Commission of Pakistan (CCP) has approved Fatima Fertilizer Company LimitedDealroom has a profile for this one. Try Dealroom →'s acquisition of shares in Agritech LimitedDealroom has a profile for this one. Try Dealroom → following a Phase I competition review. The shares were bought through the Pakistan Stock ExchangeDealroom has a profile for this one. Try Dealroom → in two stages, in 2023 and 2024, with the CCP assessing the combined holding. The deal value was not disclosed.
Who's involved? Fatima Fertilizer manufactures, buys, sells, imports, and exports fertilizers and chemicals. Agritech produces and sells urea and granulated Single Super Phosphate (SSP) fertilizer.
Why the scrutiny? The commission reviewed the deal's impact on Pakistan's fertilizer market, defining urea and SSP as the relevant product markets. It found a horizontal overlap in urea, which raised the companies' combined share, while Fatima held no SSP share, leaving Agritech's position there unchanged.
The twist: During the review, Fatima told the CCP it had sold its entire Agritech stake and no longer intended to seek control. As a result, Fatima held no shares in Agritech when the commission reached its decision.
What's the outcome? The CCP concluded the transaction posed no risk of substantially reducing competition, finding it created no entry barriers, no significant increase in market power, and no dominant position. It authorized the deal under Section 31(1)(d)(i) of the Competition Act, 2010.
The signal: The approval shows regulators weighing consolidation in Pakistan's concentrated fertilizer sector carefully, even when overlaps emerge. Here, the acquirer's exit effectively defused the competition concern before a ruling was needed.
Read more: propakistani.pk
Image credit: Generated with Gemini
