CCP clears UAE firm’s acquisition of BASF Pakistan

The Competition Commission of Pakistan (CCP) on Tuesday approved the proposed acquisition of the entire shareholding of BASF Pakistan (Private) Limited by UAE-based Kemyion Chemical Solutions Trading FZCO after a Phase-I review under the Competition Act, 2010.

Kemyion Chemical Solutions Trading FZCO submitted a pre-merger application to the Commission under Section 11 of the Competition Act, 2010, seeking approval to acquire 100% shareholding of BASF Pakistan (Private) Limited from BASF SE, Germany.

The acquisition is being carried out under a Share Purchase Agreement dated November 18, 2025.

Following its competition assessment, the Commission authorised the transaction under Section 31(1)(d)(i) of the Act, according to a CCP press release.

Kemyion Chemical Solutions Trading FZCO is a UAE-based company authorised to trade in acids, alkalis, basic industrial chemicals, construction chemicals, insecticides, petrochemicals, and plastic and nylon raw materials.

BASF Pakistan (Private) Limited is engaged in the indenting and merchandising of chemical products, including colourants, catalysts, solvents, oxo alcohols and process chemicals.

The seller, BASF SE, is a German multinational chemical company and the parent entity of the BASF Group.

During its review, the Commission assessed the likely impact of the transaction on competition in the relevant market.

The relevant product market was identified as the trade of chemicals, including specialty and industrial chemicals, while the relevant geographic market was determined to be Pakistan.

The Commission observed that the acquiring company is not currently operational in Pakistan and does not generate revenue or own assets in the country.

It said the transaction would not result in any material change in market concentration.

The assessment further found that the combined market share of the merger parties would remain unchanged and insignificant after completion of the transaction.

The Commission concluded that the proposed acquisition would not create barriers to entry or significantly enhance the market power of the merger parties.

It also found no basis to conclude that the transaction would substantially lessen competition or create or strengthen a dominant position in the relevant market.

Accordingly, the Commission authorised the transaction under the Competition Act, 2010.

The CCP said the approval reflected its commitment to facilitating investment and efficient market transactions through timely merger reviews while ensuring that competition, market efficiency and consumer welfare remain protected.