CCP clears CVC’s acquisition of DSM-Firmenich’s ANH business

ISLAMABAD: The Competition Commission of Pakistan (CCP) has cleared CVC’s acquisition of DSM-Firmenich’s Animal Nutrition & Health (ANH) business, a global transaction carrying an enterprise value of around €2.2 billion, after finding that the deal would neither increase market concentration nor substantially lessen competition in Pakistan.

The Pakistan leg of the global deal came under CCP scrutiny because DSM’s Animal Nutrition and Health Business operates in the country through DSM-Firmenich Pakistan (Private) Limited.

The proposed transaction was reviewed under Section 11 of the Competition Act, 2010 to determine whether it could create or strengthen a dominant position or otherwise raise competition concerns in the relevant markets.

Under the deal, Netherlands-based DSM B.V., a wholly owned subsidiary of Swiss-based DSM-Firmenich AG, will reorganise the ANH business into two separate entities — SpecialtyCo Business and EssentialCo Business. Four investment vehicles backed by CVC Fund IX will acquire controlling equity interests and corresponding voting rights in the two businesses, while DSM-Firmenich Group will retain non-controlling interests.

The acquirers are 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, United States. They are newly incorporated investment vehicles indirectly owned and financed by CVC Fund IX.

The business being acquired spans vitamins and carotenoids, Performance Solutions, Premixes, Precision Services and Aroma Ingredients. Internationally, DSM-Firmenich has described ANH as a provider of science-based animal nutrition and health solutions ranging from vitamins and premixes to feed additives aimed at improving animal health, performance, feed efficiency and sustainability.

The CCP’s Phase-I assessment found that the acquirers, CVC Fund IX and their controlled portfolio companies, do not operate in Pakistan in any of the relevant product markets in which DSM’s business is active. Consequently, the transaction creates neither a horizontal overlap nor a vertical relationship in Pakistan and will not result in an increase in market share or market concentration.

The Commission also found that the transaction was unlikely to create entry barriers, materially enhance market power, exclude competitors or substantially lessen

competition. It accordingly authorised the transaction under Section 31 (1) (d) (i) of the Competition Act, 2010.

The global transaction forms part of DSM-Firmenich’s strategic exit from animal nutrition. The company had earlier sold its Feed Enzymes business to Novonesis for €1.5 billion in 2025. Taken together, DSM-Firmenich has put the enterprise value of its ANH divestments at €3.7 billion.

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