CCP Allows Pak Arab Fertilizers to Buy Pakistan Oxygen Ltd’s Gas Plant

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 after completing a Phase I merger review under the Competition Act, 2010.

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.

Following its assessment, the competition regulator cleared the transaction under Section 31 of the Competition Act.

Pak Arab Fertilizers is a wholly owned subsidiary of Fatima Fertilizer Company Limited and is engaged in the manufacturing, import, export and sale of fertilizers and chemical products. Pakistan Oxygen is one of the country’s longstanding industrial companies, producing industrial and medical gases, welding electrodes and medical equipment.

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.

However, the Commission concluded that the acquisition would result in only a limited increase in market share and would not materially change competitive conditions. It found no evidence that the transaction would create significant barriers for new entrants, strengthen market dominance or substantially reduce competition.

The CCP further determined that the acquisition would not distort prevailing market conditions or give the merger parties excessive market power. As a result, the transaction was approved under Section 31(1)(d)(i) of the Competition Act, 2010.

The approval reflects the regulator’s broader objective of facilitating legitimate business transactions and investment activity while ensuring that competition, market efficiency and consumer interests remain protected.