The Competition Commission of Pakistan (CCP) has approved the acquisition of 100% shareholding of BASF Pakistan (Private) Limited by UAE-based Kemyion Chemical Solutions Trading FZCO following a Phase-I review under the Competition Act, 2010.
Transaction Details
Kemyion submitted a pre-merger application under Section 11 of the Act, seeking approval to acquire BASF Pakistan from BASF SE, Germany, under a share purchase agreement dated November 18, 2025. The commission authorised the transaction under Section 31(1)(d)(i) of the Act.
Kemyion 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 is engaged in indenting and merchandising a wide range of chemical products, including colorants, catalysts, solvents, oxo alcohols and process chemicals. The seller, BASF SE, is a German multinational chemical company and parent entity of the BASF Group.
Competition Assessment
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 any revenue or own any assets in the country. Consequently, 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 following the transaction.
Conclusion
The commission concluded that the proposed acquisition would neither create barriers to entry nor significantly enhance the market power of the merger parties. It further 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.
