CCP approves UAE-based acquisition of Pakistani aircraft maintenance firm
- It notes no horizontal overlap between the acquirer and target
The Competition Commission of Pakistan (CCP) has approved the acquisition of a shareholding in Northern Technik (Private) Limited by UAE-based International Business Company FZE, opening the door for new foreign investment in Pakistan’s aviation services sector, according to a press release.
International Business Company FZE, incorporated in the UAE in 2010, is engaged in trading, import-export, and consultancy in business, marketing, and management. Northern Technik, incorporated in Pakistan in 2018, provides line maintenance services for commercial aircraft operating in the country.
The seller, SPARS (Private) Limited, is a diversified local company with interests across aviation, telecom, real estate, pharmaceuticals, IT, construction, and engineering services.
The CCP conducted a phase-I competition assessment under Section 11 of the Competition Act, 2010, defining the relevant market as aircraft line maintenance services in Pakistan.
The market remains fragmented, with multiple service providers and airlines maintaining in-house capabilities.
The commission noted no horizontal overlap between the acquirer and target, and determined that the transaction will not alter market structure, create or strengthen a dominant position, or raise entry barriers.
Based on its review, the CCP concluded that the transaction poses no competition concerns and authorized it under Section 31(1)(d)(i) of the Competition Act, 2010.
The Commission emphasized its commitment to facilitating investment through efficient and transparent merger review processes while maintaining a fair and competitive market environment.
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