The Competition Commission of Pakistan (CCP) has approved Citi Pharma Limited’s acquisition of the entire shareholding of Pakheim International Pharma (Pvt.) Limited after completing a Phase-I competition assessment under the Competition Act, 2010.
Citi Pharma manufactures and sells active pharmaceutical ingredients (APIs), pharmaceutical formulations, medical chemicals and nutraceutical products, while Pakheim International Pharma operates in the pharmaceutical manufacturing sector. Following the acquisition, Pakheim will become a wholly owned subsidiary of Citi Pharma.
The CCP identified overlapping operations in antibiotic, painkiller and anti-diabetic formulations but found the overlap insignificant due to Pakheim’s negligible market share. The Commission also assessed a potential vertical relationship involving Citi Pharma’s API production and Pakheim’s pharmaceutical manufacturing, finding no competition concerns.
According to the CCP, the transaction is expected to have a negligible impact on Citi Pharma’s market shares and will neither create barriers to entry nor prevent existing competitors from competing effectively. The Commission concluded that the acquisition would not substantially lessen competition or create or strengthen a dominant market position.
