CCP clears UAE investment in aircraft maintenance firm, signals confidence in competitive aviation services market

The Competition Commission of Pakistan has approved a foreign investment transaction in the country’s aviation support services sector, authorising the acquisition of a shareholding in Northern Technik (Private) Limited by UAE-based International Business Company FZE, according to an official statement.

The decision followed a Phase-I merger review conducted under Section 11 of the Competition Act, 2010, during which the regulator assessed the competitive implications of the transaction within Pakistan’s aircraft line maintenance services market.

After examining the structure of the sector, the commission determined that the market remains fragmented, with several service providers operating alongside airlines that maintain their own in-house maintenance capabilities. The assessment concluded that the acquisition would neither alter the competitive landscape nor create or strengthen a dominant market position.

The regulator also found no horizontal overlap between the acquiring entity and the target company, indicating that the transaction does not pose risks related to market concentration or barriers to entry. On this basis, the deal was formally authorised under Section 31(1)(d)(i) of the law.

International Business Company FZE, established in the United Arab Emirates in 2010, operates in trading, import-export activities, and consultancy services covering business, marketing, and management functions. The investment marks a new entry into Pakistan’s aviation services ecosystem.

The target firm, Northern Technik (Private) Limited, incorporated in Pakistan in 2018, provides line maintenance services for commercial aircraft operating across domestic aviation networks.

The shareholding was previously held by SPARS (Private) Limited, a local conglomerate with business interests spanning aviation, telecommunications, real estate, pharmaceuticals, information technology, construction, and engineering.

In its statement, the Competition Commission of Pakistan reiterated its commitment to facilitating investment through efficient and transparent merger review procedures, while ensuring that competitive market conditions are preserved across key sectors of the economy.