Pakistan regulator approves Attock Cement acquisition by Fauji Cement, Kot Addu Power

The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of the Attock Cement Pakistan Limited by Fauji Cement Company Limited and Kot Addu Power Company Limited.

The regulator has issued its decision following a Phase-I competition assessment conducted under the Competition Act, 2010.

On February 3, Fauji Cement and Kot Addu Power Company Limited filed a pre-merger application for the acquisition of controlling interest in Attock Cement from Lebanon’s Pharaon Investment Group Limited.

Upon completion of the transaction, Fauji Cement Company Limited and Kot Addu Power Company Limited will acquire control of Attock Cement Pakistan Limited.

CCP’s analysis noted that while there is a horizontal overlap between Fauji Cement Company Limited and Attock Cement Pakistan Limited, the post-transaction market share would remain below the statutory dominance threshold, and the cement sector in Pakistan continues to have multiple established competitors.

The regulator concluded that the proposed transaction is neither likely to create or strengthen a dominant position nor to substantially lessen competition or adversely affect the competitive structure of the market. Accordingly, the transaction has been authorized in accordance with the provisions of the Competition Act, 2010.

The authorization is limited to CCP’s assessment of the transaction under Section 11 of the Competition Act, 2010 and does not affect any ongoing enquiries, proceedings, or matters pending before the Commission, the Competition Appellate Tribunal, or any other competent forum.

Fauji Cement Company Limited, a subsidiary of Fauji Foundation, is a publicly listed company engaged in the manufacture and sale of cement and related products. Kot Addu Power Company Limited is a publicly listed energy company engaged in power generation.