Following a Phase-I competition assessment under the Competition Act, 2010, the Competition Commission of Pakistan, also known as the CCP, authorized Citi Pharma Limited to buy all shares of Pakheim International Pharma (Pvt.) Limited.
Citi Pharma produces active pharmaceutical ingredients, medicines, medical chemicals, and nutraceutical items, whereas Pakheim International Pharma works in medicine manufacturing. Pakheim is set to turn into a fully owned subsidiary of Citi Pharma once the buyout concludes.
Officials at the CCP noted overlapping business activities in anti-diabetic, painkiller, and antibiotic products, yet determined this overlap was minor because Pakheim holds a very small market share. The agency additionally evaluated a vertical link connecting Citi Pharma's active pharmaceutical ingredient creation and Pakheim's medicine production, discovering zero competition issues.
The CCP stated that the deal will cause a very small change in Citi Pharma market shares and will not build entry barriers or stop current rivals from competing properly. The regulatory body determined that the purchase will not significantly reduce competition or build or boost a dominant position in the market.
