Citi Pharma Limited (PSX: CPHL) has obtained regulatory clearance to purchase all shares of Pakheim International Pharma, turning the latter into a wholly owned subsidiary.
The Competition Commission of Pakistan (CCP) gave its nod after assessing the deal under the Competition Act, 2010.
According to the regulator, the takeover will not markedly affect competition in Pakistan's pharmaceutical sector because Pakheim's market presence is limited.
Both firms operate in three product lines, antibiotic formulations, painkiller formulations and anti-diabetic medicines, but the CCP said the overlap is minor since Pakheim's market share is negligible.
The commission noted that the companies do not compete in anti-ulcer and anti-allergic medicine categories.
The CCP also reviewed the link between Citi Pharma's API production and Pakheim's use of those APIs for drug manufacturing.
It found that Pakheim had not bought any APIs from Citi Pharma in the past two years and concluded the deal raises no major competition issues.
The regulator stated the acquisition will not create entry barriers, limit existing rivals, or establish a dominant market position.
Citi Pharma is a listed firm that manufactures and sells APIs, pharmaceutical formulations, medical chemicals, botanical products and nutraceuticals.
Pakheim International Pharma is a privately held company that produces and markets pharmaceutical products.
