CCP Approves Pak Arab Fertilizers’ Acquisition of Pakistan Oxygen’s LCO₂ Plant

ISLAMABAD: (Web Desk) -The Competition Commission of Pakistan (CCP) has approved Pak Arab Fertilizers Limited’s acquisition of the liquid carbon dioxide (LCO₂) plant owned by Pakistan Oxygen Limited after completing a Phase-I merger review under the Competition Act, 2010.

Pak Arab Fertilizers submitted a pre-merger application under Section 11 of the Competition Act, seeking regulatory clearance to acquire the LCO₂ production facility through an Asset Purchase Agreement signed on February 4, 2026. Following its assessment, the Commission granted approval under Section 31 of the Act.

Pak Arab Fertilizers, a wholly owned subsidiary of Fatima Fertilizer Company Limited, operates in the manufacturing, import, export and sale of fertilizers and chemical products. Pakistan Oxygen Limited is a well-established industrial company engaged in producing industrial and medical gases, welding electrodes and supplying medical equipment.

During the review process, the CCP evaluated the transaction’s potential impact on market competition, concentration levels and industry dynamics. The Commission noted that the deal qualifies as a horizontal merger because both parties operate within the same relevant market. However, it concluded that the resulting increase in market share would be limited and would not significantly affect competitive conditions.

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The Commission further determined that the acquisition would not create barriers for new entrants, substantially increase market power, or lead to a dominant position in the market. Its analysis found no indication that the transaction would reduce competition or distort existing market dynamics.

Based on these findings, the CCP approved the transaction under Section 31(1)(d)(i) of the Competition Act, 2010, concluding that it does not create or strengthen a dominant market position.

The approval underscores the Commission’s commitment to facilitating legitimate business growth and investment while maintaining fair competition, market efficiency and consumer welfare across industries.