The Competition Commission of Pakistan (CCP) has approved the acquisition of the liquid carbon dioxide (LCO₂) plant of Pakistan Oxygen Limited by Pak Arab Fertilizers Limited, following a Phase I merger review under the Competition Act, 2010.
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Pak Arab Fertilizers submitted a pre‑merger application seeking regulatory approval to acquire the LCO₂ production facility under an Asset Purchase Agreement signed on February 4, 2026. After completing its assessment, the CCP cleared the transaction under Section 31 of the Competition Act.
| Transaction Detail | Information |
|---|---|
| Acquirer | Pak Arab Fertilizers Limited (wholly owned subsidiary of Fatima Fertilizer Company Limited) |
| Target Asset | Liquid carbon dioxide (LCO₂) plant of Pakistan Oxygen Limited |
| Agreement Date | February 4, 2026 |
| Regulatory Approval | CCP Phase I clearance under Section 31, Competition Act 2010 |
| Transaction Type | Horizontal merger (both parties operate in same relevant market) |
About the Parties
- Pak Arab Fertilizers Limited is a wholly owned subsidiary of Fatima Fertilizer Company Limited. The company is engaged in the manufacturing, import, export, and sale of fertilizers and chemical products.
- Pakistan Oxygen Limited is one of Pakistan’s longstanding industrial companies, producing industrial and medical gases, welding electrodes, and medical equipment.
CCP’s Review and Findings
During its review, the CCP examined the transaction’s potential impact on market concentration, competition, and industry dynamics. The regulator classified the deal as a horizontal merger because both parties operate in the same relevant market.
The Commission concluded that:
- The acquisition would result in only a limited increase in market share
- It would not materially change competitive conditions
- There was no evidence that the transaction would create significant barriers for new entrants, strengthen market dominance, or substantially reduce competition
- The acquisition would not distort prevailing market conditions or give the merged parties excessive market power
As a result, the transaction was approved under Section 31(1)(d)(i) of the Competition Act, 2010.
About the Competition Commission of Pakistan
The Competition Commission of Pakistan (CCP) is the country’s antitrust regulator, responsible for ensuring fair competition and preventing anti‑competitive practices across all sectors of the economy. The CCP reviews mergers and acquisitions to assess their impact on market competition.
About Pak Arab Fertilizers
Pak Arab Fertilizers Limited is a wholly owned subsidiary of Fatima Fertilizer Company Limited, engaged in the manufacturing, import, export, and sale of fertilizers and chemical products.
About Pakistan Oxygen Limited
Pakistan Oxygen Limited (PSX: PAKOXY) is a leading manufacturer of industrial and medical gases, welding electrodes, and medical equipment, with a long‑standing presence in the Pakistani market.
