CCP authorises Fatima Fertilizer’s acquisition of shares

ISLAMABAD: The Competition Commission of Pakistan (CCP) has authorised Fatima Fertilizer Company Limited’s acquisition of shares in Agritech Limited after determining that the transaction would not substantially lessen competition or strengthen a dominant position in Pakistan’s fertilizer market.

The transaction comprised two purchases of Agritech shares through the Pakistan Stock Exchange — an initial acquisition in 2023 followed by an additional acquisition in 2024.

The CCP assessed the shareholding acquired through both purchases as a single aggregate transaction under its Phase-I merger review.

The review assumed particular significance because both companies operate in the fertilizer sector, which supplies a critical input to Pakistan’s agricultural economy.

Fatima Fertilizer is a publicly listed manufacturer and supplier of fertilizers and chemicals, while Agritech produces and sells urea and granulated Single Super Phosphate (SSP) fertilizer.

For its competition assessment, CCP identified urea and SSP as the relevant product markets, with Pakistan as the relevant geographic market. The commission examined the respective market positions of Fatima Fertilizer, Agritech and their competitors, along with the likely effect of the acquisition on concentration and competitive conditions.

The review found a horizontal overlap between the parties in the urea market, where the acquisition increased their combined market share. However, CCP determined that the resulting change did not create entry barriers or significantly enhance the market power of the parties.

No competitive overlap arose in the SSP market because Fatima Fertilizer had no share in that segment. Agritech’s position in the SSP market, therefore, remained unchanged following the transaction.

During the review, Fatima Fertilizer informed the CCP that it had subsequently divested its entire shareholding in Agritech and no longer intended to pursue control of the company. As a result, Fatima Fertilizer held no shares in Agritech when the commission issued its determination.

Taking into account the parties’ market positions and the subsequent divestment, CCP concluded that the transaction posed no risk of substantially lessening competition in either of the relevant markets. It also found that the acquisition did not create or strengthen a dominant position within the meaning of the Competition Act, 2010.

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

The decision underscores the importance of merger scrutiny in the fertilizer industry, where changes in ownership and market concentration can have wider implications for the availability and competitiveness of agricultural inputs and production costs.

Copyright Business Recorder, 2026