CCP clears CVC Fund IX acquisition of DSM-Firmenich’s animal nutrition business
The Competition Commission of Pakistan approved the acquisition of DSM-Firmenich's Animal Nutrition and Health Business by CVC Fund IX investment vehicles, finding no adverse impact on market competition.
- CCP's approval of the DSM-Firmenich animal nutrition acquisition.
- Reorganization of DSM-Firmenich's animal nutrition and health business.
- CVC Fund IX's acquisition of controlling equity interests.
- The CCP's assessment of market competition in Pakistan.
The Competition Commission of Pakistan (CCP) has approved the acquisition of controlling equity interests in DSM-Firmenich’s Animal Nutrition and Health Business by four investment vehicles indirectly owned and financed by CVC Fund IX.
The transaction was cleared following a Phase-I competition assessment under Section 11 of the Competition Act, 2010, the CCP said in a statement on Tuesday.
DSM’s Animal Nutrition and Health Business operates in Pakistan through DSM-Firmenich Pakistan (Private) Limited. As part of the transaction, DSM B.V., a Netherlands-based wholly owned subsidiary of Switzerland-based DSM-Firmenich AG, will reorganise the business into two entities — SpecialtyCo Business and EssentialCo Business.
DSM-Firmenich Group will retain non-controlling equity interests, while the CVC-backed acquirers will obtain controlling equity interests and corresponding voting rights in both entities.
The acquirers comprise Specialty Bidco B.V. and Essential Bidco B.V., incorporated in the Netherlands, and Specialty (U.S.) Bidco Inc. and Essential (U.S.) Bidco Inc., incorporated in Delaware, US. The four investment vehicles are indirectly owned and financed by CVC Fund IX, managed and advised by affiliates of CVC Capital Partners plc.
The animal nutrition and health business manufactures nutrition ingredients for animal feed, including vitamins and carotenoids, performance solutions, premixes, precision services and aroma ingredients.
According to the CCP, its assessment found that CVC Fund IX, the acquiring entities and their controlled portfolio companies are not active in Pakistan in any of the relevant product markets where DSM’s business operates.
As a result, the transaction creates neither horizontal overlap nor a vertical relationship and would not increase market share or market concentration in Pakistan, the Commission said.
The CCP concluded that the acquisition was unlikely to create entry barriers, materially enhance market power or substantially lessen competition in the relevant markets.
It consequently authorised the transaction under the Competition Act, 2010.
The Commission said it remains committed to facilitating investment, supporting business growth and promoting a competitive and investor-friendly business environment in Pakistan.
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