CCP clears Fauji cement–KAPCO acquisition of Attock cement after phase-I review

The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of Attock Cement Pakistan Limited by Fauji Cement Company Limited and Kot Addu Power Company Limited (KAPCO), following a Phase-I competition assessment under the Competition Act, 2010.

According to a statement issued on Thursday, Fauji Cement and KAPCO submitted a pre-merger application on February 3, 2026, seeking approval to acquire a controlling interest in Attock Cement from Pharaon Investment Group Limited.

The transaction is being executed under a Scheme of Compromises, Arrangement, and Reconstruction Agreement dated January 30, 2026. Upon completion, Fauji Cement and KAPCO will jointly assume control of Attock Cement.

Fauji Cement, a subsidiary of Fauji Foundation, is a publicly listed manufacturer and seller of cement and related products. KAPCO is also publicly listed and operates in the power generation sector.

In its competition analysis, the CCP acknowledged the existence of a horizontal overlap between Fauji Cement and Attock Cement in the cement market. However, it determined that the combined post-transaction market share would remain below the statutory dominance threshold. The regulator further observed that Pakistan’s cement sector continues to feature multiple established competitors.

Based on its assessment, the Commission concluded that the transaction is unlikely to create or strengthen a dominant position, substantially lessen competition, or negatively impact the market’s competitive structure. The acquisition has therefore been authorised under Section 11 of the Competition Act, 2010.

The approval is confined to the Commission’s review under Section 11 and does not prejudice any ongoing enquiries, proceedings, or matters pending before the CCP, the Competition Appellate Tribunal, or any other competent forum.

The regulator noted that the transaction signals continued investment activity in Pakistan’s cement industry.