CCP approves acquisition of Pakistan oxygen’s liquid CO2 Plant by Pak Arab fertilizers

ISLAMABAD, Jun 3 (APP):The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of the liquid carbon dioxide (LCO2) plant of Pakistan Oxygen Limited by Pak Arab Fertilizers Limited following a Phase-I review conducted under the Competition Act, 2010.

Pak Arab Fertilizers Limited submitted a pre-merger application to the Commission under Section 11 of the Competition Act, seeking approval to acquire the LCO2 plant of Pakistan Oxygen Limited pursuant to an Asset Purchase Agreement dated February 4, 2026, said a release issued here on Wednesday.

Following a competition assessment, the Commission authorized the transaction under Section 31 of the Act.

Pak Arab Fertilizers Limited, a wholly owned subsidiary of Fatima Fertilizer Company Limited, is engaged in the manufacturing, production, import, export and sale of fertilizers and chemicals. Pakistan Oxygen Limited is a longstanding industrial enterprise engaged in the manufacture of industrial and medical gases, welding electrodes and the marketing of medical equipment.

During its review, the Commission’s assessment examined the likely impact of the transaction on market structure, competition dynamics and market concentration. The Commission observed that the transaction involves the acquisition of a specific production asset and constitutes a horizontal merger, as both the acquiring group and the target operate within the same relevant market. However, the resulting increase in market share would be limited and would not materially alter competitive conditions in the market.

The Commission further concluded that the transaction would neither create barriers to entry for other market participants nor significantly enhance the market power of the merger parties. No evidence was found to suggest that the acquisition would substantially lessen competition, create or strengthen a dominant position, or distort prevailing competitive conditions in the relevant market.

Accordingly, the Commission determined that the proposed transaction does not create or strengthen a dominant position within the meaning of the Competition Act, 2010 and granted approval under Section 31(1)(d)(i) of the Act.

The approval reflects the CCP’s continued commitment to facilitating legitimate business transactions and investment activity through timely merger reviews while ensuring that competition, market efficiency and consumer welfare remain protected.