CCP approves Fatima Fertilizer-Agritech transaction

October 07, 2026 (MLN): The Competition Commission of Pakistan (CCP) has approved a transaction involving Fatima Fertilizer Company Limited’s acquisition of shares in Agritech Limited, concluding that the deal does not raise competition concerns in Pakistan’s fertilizer market.

The transaction involved two separate share acquisitions through the Pakistan Stock Exchange, with the first taking place in 2023 and the second in 2024. For its Phase-I review, the CCP considered the combined shareholding acquired through both transactions.

Fatima Fertilizer, a listed company engaged in the production, sale, purchase, import and export of fertilizers and chemicals, and Agritech, a listed producer and seller of urea and granulated Single Super Phosphate (SSP), operate in overlapping segments of the fertilizer industry.

The CCP identified urea and SSP as the relevant product markets, with Pakistan constituting the relevant geographic market. The Commission assessed the market positions of both companies and their competitors, along with the potential impact of the transaction on market concentration and competition.

The review found a horizontal overlap between the two companies in the urea market, where the combined market share increased following the acquisition. However, Fatima Fertilizer had no presence in the SSP market, leaving Agritech’s position in that segment unchanged.

During the review process, Fatima Fertilizer informed the CCP that it had subsequently divested its entire stake in Agritech and no longer intended to exercise control over the company. As a result, Fatima Fertilizer held no shares in Agritech when the Commission reached its determination.

Considering the market assessment and the subsequent divestment, the CCP determined that the transaction would not substantially lessen competition in the relevant markets.

The Commission found that the transaction did not create entry barriers, materially strengthen the market power of the parties, or create or reinforce a dominant position under the Competition Act, 2010.

Accordingly, the CCP authorized the transaction under Section 31(1)(d)(i) of the Competition Act, 2010.

The decision forms part of the Commission’s merger-control function aimed at ensuring that changes in ownership and market structures do not undermine competitive conditions, particularly in important sectors such as fertilizers.

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