CCP clears Fatima Fertilizer’s Agritech share purchases

The Competition Commission of Pakistan (CCP) has authorized Fatima Fertilizer Company Ltd.’s acquisition of shares in Agritech Ltd. following a Phase I competition review, finding that the transaction did not pose a risk of substantially lessening competition.

The shares were acquired through the Pakistan Stock Exchange in two stages, with an initial acquisition in 2023 followed by an additional purchase in 2024. CCP assessed the aggregate shareholding acquired through both transactions.

The review was conducted on an ex-post-facto basis. CCP said Fatima Fertilizer made the 2023 acquisition without obtaining prior approval from the Commission and subsequently applied for authorization on August 22, 2024.

At a hearing on March 5, 2026, the Commission directed the parties to submit an undertaking to ensure future compliance with the Competition Act’s pre-merger approval requirements.

Fatima Fertilizer is a publicly listed company engaged in the manufacture, production, purchase, sale, import and export of fertilizers and chemicals.

Agritech, also publicly listed, produces and sells urea and granulated single super phosphate, or SSP, fertilizer.

Why did CCP approve the Fatima Fertilizer-Agritech transaction?

CCP approved the transaction after finding that the combined urea market share of Fatima Fertilizer and Agritech did not substantially lessen competition, create entry barriers or significantly increase market power. The regulator also noted that Fatima Fertilizer had divested its entire Agritech shareholding and no longer intended to pursue control.

Given fertilizer’s importance as an agricultural input, the Commission examined the transaction’s potential effect on market structure, concentration and competition in Pakistan’s fertilizer sector.

It identified urea and SSP as the relevant product markets and Pakistan as the relevant geographic market. CCP assessed the market positions of Fatima Fertilizer, Agritech and their competitors.

The review found a horizontal overlap between Fatima Fertilizer and Agritech in the urea market, increasing their combined market share.

In the SSP market, however, Fatima Fertilizer had no market share, meaning Agritech’s position remained unchanged.

Fatima Fertilizer had already exited Agritech

During the review, Fatima Fertilizer informed CCP that it had divested its entire shareholding in Agritech and no longer intended to pursue control of the company.

As a result, Fatima Fertilizer held no shares in Agritech by the time CCP issued its determination.

The Commission concluded that the transaction did not create entry barriers, significantly enhance the market power of the companies or create or strengthen a dominant position in the relevant markets.

CCP accordingly authorized the transaction under Section 31(1)(d)(i) of the Competition Act, 2010. The order was issued on September 17.