Citi Pharma Limited has secured approval from the Competition Commission of Pakistan (CCP) to acquire a 100% stake in Pakheim International Pharma (Private) Limited, advancing its plans to expand its pharmaceutical manufacturing operations and strengthen its position in the domestic market. The competition regulator authorised the proposed transaction through an order dated October 9, 2026, after determining that the acquisition did not raise competition concerns. In a notice submitted to the Pakistan Stock Exchange (PSX) on October 19, Citi Pharma informed shareholders and the general public that it had received the regulatory clearance under Section 31(1)(d)(i) of the Competition Act, 2010. The transaction can now proceed subject to the completion of the remaining legal and regulatory formalities.
The approval relates to a share purchase agreement signed between the parties on May 6, 2026, under which Citi Pharma intends to acquire the entire shareholding of Pakheim International Pharma. The company disclosed the regulatory development in accordance with Section 96 of the Securities Act, 2015, and the applicable provisions of the PSX Rule Book. The CCP order was issued in Case No. 1614/MergerCCP/2026. Regulatory approval represents an important step in the acquisition process, although the transaction remains subject to the completion of outstanding requirements. Citi Pharma has indicated that further disclosures will be made as the remaining formalities are completed, keeping investors informed about developments related to the proposed change in ownership.
Citi Pharma announced the planned acquisition in May 2026 as part of a broader strategy to expand its pharmaceutical manufacturing capabilities, improve production efficiency and increase its presence in domestic and international markets. The acquisition is expected to provide the company with an opportunity to broaden its product portfolio and strengthen its operational capacity by bringing Pakheim’s manufacturing business within its corporate structure. Full ownership could also enable closer coordination between production planning, raw material supplies and distribution activities. However, the extent of the expected operational benefits will depend on the successful completion of the transaction and the implementation of the company’s expansion plans.
According to Citi Pharma’s earlier disclosure, Pakheim International Pharma generates approximately Rs500 million in annual revenue. Citi Pharma aims to increase the acquired company’s annual revenue to Rs5 billion over the next five years, representing a tenfold expansion target. The planned growth is expected to be supported by a wider range of pharmaceutical products, stronger distribution networks and additional investment in manufacturing facilities. Achieving this target would require substantial business expansion and sustained demand for the company’s products. The revenue objective represents management’s stated ambition rather than a guaranteed outcome, and its achievement will depend on factors such as production capacity, market demand, distribution reach, regulatory requirements and the company’s ability to execute its investment plans.
The proposed acquisition is also expected to strengthen Citi Pharma’s active pharmaceutical ingredients (API) business. APIs are the active substances used in pharmaceutical products to produce their intended therapeutic effects and serve as essential inputs for drug manufacturing. Under the planned arrangement, Citi Pharma expects to supply raw materials directly to Pakheim’s manufacturing operations, creating an opportunity to increase internal demand for its API products. This relationship could support higher sales volumes, improve utilisation of existing production capacity and reduce inefficiencies associated with coordinating supply between separate businesses. Closer integration of raw material production and pharmaceutical manufacturing may also help the company manage procurement and production requirements more effectively.
The company previously disclosed that the transaction includes a flexible payment arrangement extending until December 31, 2026. Payments are expected to be financed through operational cash flows, according to the earlier announcement. This proposed funding structure is relevant to the financial management of the acquisition because it links the payment schedule to the company’s operating resources. The final financial implications will depend on the transaction’s completion, the payment terms and the cash flows available during the relevant period. Citi Pharma has not indicated in the provided disclosure that the CCP approval changes the previously announced payment arrangement.
Citi Pharma was incorporated as a private limited company on October 8, 2012, and is principally engaged in manufacturing and selling pharmaceutical products, medical chemicals and botanical products. The company converted into an unlisted public company on October 13, 2020, before its shares were listed on the Pakistan Stock Exchange on July 9, 2021. Its proposed acquisition of Pakheim represents a further step in its expansion strategy within Pakistan’s pharmaceutical sector, with a focus on manufacturing capacity, product development and integration of raw material supplies.
The CCP’s decision removes the competition regulator’s objection to the proposed acquisition, allowing Citi Pharma to move forward with the remaining steps required to complete the transaction. The planned takeover is intended to expand the company’s pharmaceutical operations while creating opportunities to strengthen its API business and increase production efficiency. Investors will be watching for subsequent disclosures confirming completion of the acquisition and providing further details about its financial and operational implications. The company’s ability to achieve its stated revenue target for Pakheim will ultimately depend on the execution of its growth strategy and the performance of the combined operations following the transaction.
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