The Competition Commission of Pakistan (CCP) has completed its Phase-I competition review and authorised a transaction involving the acquisition of shares in Agritech Limited by Fatima Fertilizer Company Limited. The Commission examined the transaction to determine its potential impact on market structure, concentration and competition in Pakistan’s fertiliser sector, particularly in the urea and granulated Single Super Phosphate (SSP) markets.
The transaction involved Fatima Fertilizer acquiring shares in Agritech through the Pakistan Stock Exchange in two stages. The initial acquisition took place in 2023, followed by an additional acquisition in 2024. For the purpose of its competition assessment, the CCP considered the aggregate shareholding acquired through both transactions rather than examining the purchases separately.
Fatima Fertilizer Company Limited is a publicly listed company involved in the manufacture, production, purchase, sale, import and export of fertilisers and chemicals. Agritech Limited is also publicly listed and operates in the production and sale of urea and granulated SSP fertiliser. Given the importance of fertilisers as an agricultural input, the CCP assessed how the transaction could affect competition and market concentration in the sector.
As part of its review, the CCP identified urea and SSP as the relevant product markets and Pakistan as the relevant geographic market. The Commission examined the market positions of Fatima Fertilizer and Agritech, along with those of their competitors, to determine the likely competitive effects of the transaction. The assessment considered whether the transaction could increase market concentration, strengthen market power or create conditions that could restrict competition.
The review identified a horizontal overlap between Fatima Fertilizer and Agritech in the urea market. The combination of their positions in that market resulted in an increase in their combined market share. The Commission therefore considered the potential implications of the increased concentration within the urea segment as part of its Phase-I assessment.
The situation was different in the SSP market. Fatima Fertilizer did not hold a market share in SSP fertiliser, meaning the transaction did not result in a horizontal overlap between the two companies in that market. Agritech’s existing position in the SSP market consequently remained unchanged as a result of the transaction.
During the competition review, Fatima Fertilizer informed the CCP that it had subsequently divested its entire shareholding in Agritech. The company also informed the Commission that it no longer intended to pursue control of Agritech. As a result, Fatima Fertilizer held no shareholding in Agritech at the time the Commission made its determination.
The CCP considered this subsequent development alongside its assessment of the relevant markets and competitive conditions. Based on the information available to the Commission, it concluded that the transaction did not create a risk of substantially lessening competition in the relevant markets. The Commission also determined that the transaction did not create entry barriers, significantly increase the market power of the parties or create or strengthen a dominant position under the Competition Act, 2010.
Following the assessment, the CCP authorised the transaction under Section 31(1)(d)(i) of the Competition Act, 2010. The decision completes the Commission’s Phase-I review of the share acquisition and reflects the role of merger control in evaluating transactions that could affect market concentration and competitive conditions.
The CCP noted that effective merger control remains particularly important in sectors such as fertilisers because competition in these markets has broader implications for agricultural production and the availability of key inputs. Changes in competition within the fertiliser sector can affect farmers, agricultural productivity and the wider national economy, making regulatory scrutiny of major corporate transactions an important part of maintaining competitive market conditions.
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