Citi Pharma Limited has received approval from the Competition Commission of Pakistan (CCP) to acquire the entire shareholding of Pakheim International Pharma (Private) Limited, paving the way for the pharmaceutical company to expand its operations through a wholly owned subsidiary. The approval followed a Phase-I competition assessment under the Competition Act, 2010, during which the regulator examined the potential impact of the transaction on competition in Pakistan’s pharmaceutical market. The commission concluded that the acquisition would not substantially reduce competition or create or strengthen a dominant position in the relevant product markets. Following completion of the applicable legal and regulatory formalities, Pakheim International Pharma will become a wholly owned subsidiary of Citi Pharma.
The regulator assessed the businesses’ activities across five product markets: antibiotic formulations, anti-ulcer formulations, painkiller formulations, anti-allergic formulations and anti-diabetic formulations. Its review identified some overlap between the companies in antibiotic formulations, painkillers and anti-diabetic medicines. However, the commission considered this overlap insignificant because Pakheim had a negligible market share in the relevant segments. No horizontal overlap was identified in anti-ulcer and anti-allergic formulations. The CCP also assessed whether the transaction could affect the ability of other pharmaceutical companies to compete, finding that the acquisition would result in only a negligible increase in Citi Pharma’s market share in the overlapping categories.
The commission also examined a potential vertical relationship between the two businesses. Citi Pharma manufactures active pharmaceutical ingredients (APIs), which are used as raw materials in the production of pharmaceutical formulations, while Pakheim manufactures and sells pharmaceutical products. The regulator found that Pakheim had not sourced APIs from Citi Pharma during the preceding two years. Based on this finding and Pakheim’s limited presence in the market, the CCP determined that the potential vertical relationship did not raise significant competition concerns. It also concluded that the acquisition would not create barriers to entry for new competitors or restrict existing companies’ ability to compete effectively in the pharmaceutical industry.
The acquisition forms part of Citi Pharma’s strategy to broaden its pharmaceutical business, strengthen its market presence and improve operational efficiency. Earlier disclosures about the proposed transaction indicated that Pakheim generated annual revenue of approximately Rs500 million, with Citi Pharma targeting an increase to Rs5 billion over the next five years through portfolio expansion, improved distribution and investment in manufacturing. The company has also identified opportunities to strengthen its API business by supplying raw materials directly to Pakheim’s manufacturing operations. Such an arrangement could support additional API sales and improve the utilisation of Citi Pharma’s production capacity, although the extent of any financial benefit will depend on the implementation of the acquisition and the performance of the combined businesses.
The transaction is being pursued under a share purchase agreement signed on May 6, 2026. Citi Pharma previously disclosed that the acquisition would proceed subject to the completion of relevant legal, regulatory and other formalities, with the payment arrangement extending until December 31, 2026. The latest approval addresses the competition assessment required for the transaction, while completion remains subject to the applicable requirements. The company has not publicly disclosed a definitive final acquisition value in the cited reports.
The approval comes as pharmaceutical companies continue to pursue expansion, distribution improvements and greater integration across manufacturing and product supply chains. For Citi Pharma, bringing Pakheim into the group could provide an additional platform for developing its pharmaceutical portfolio and strengthening links between API production and finished medicines. The acquisition may also help the company broaden its customer base and increase its presence in selected therapeutic categories. However, the longer-term impact will depend on execution, demand, manufacturing efficiency and the company’s ability to expand sales while managing costs. The CCP’s decision clears the competition review after finding no significant threat to market competition, allowing Citi Pharma to move forward with the acquisition in accordance with the remaining legal and regulatory requirements.
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