Commerce Desk
ISLAMABAD : The Competition Commission of Pakistan (CCP) has approved the acquisition of the entire shareholding of Pakheim International Pharma (Pvt.) Limited by Citi Pharma Limited, following a Phase-I competition assessment under the Competition Act, 2010.
Citi Pharma is a public listed company engaged in the manufacture and sale of pharmaceuticals, medical chemicals and botanical products. Its operations include the production and sale of Active Pharmaceutical Ingredients (APIs), pharmaceutical formulations and nutraceutical products. Pakheim International Pharma is a private limited company engaged in the manufacture and sale of pharmaceutical products. Pakheim International Pharma will become a wholly owned subsidiary of Citi Pharma Limited.
For its competition assessment, CCP identified five relevant product markets: Antibiotic Formulations, Anti-Ulcer Formulations, Pain Killer Formulations, Anti-Allergic Formulations and Anti-Diabetic Formulations.
The Commission found horizontal overlap between the parties in the markets for Antibiotic Formulations, Pain Killer Formulations and Anti-Diabetic Formulations. However, the overlap was assessed as insignificant due to the negligible market share of the target company. No horizontal overlap was identified in Anti-Ulcer and Anti-Allergic Formulations.
CCP also examined a potential vertical relationship arising from Citi Pharma’s production of APIs and Pakheim’s use of APIs in pharmaceutical formulations. The assessment found that Pakheim had not sourced any API from Citi Pharma during the preceding two years. Given the limited market presence of the target company, the potential vertical relationship was not considered to raise any competition concerns.
The Commission further observed that the transaction would result in only a negligible increase in Citi Pharma’s market shares in the overlapping therapeutic segments. It would neither create barriers to entry nor restrict the ability of existing competitors to compete effectively.
Accordingly, the Commission concluded that the proposed transaction would not result in a substantial lessening of competition, nor create or strengthen a dominant position in any of the relevant markets.
By reviewing mergers and acquisitions, CCP ensures that transactions do not substantially lessen competition, while facilitating legitimate business combinations that improve efficiency and attract investment. The result is competitive markets and better outcomes for consumers.
