CCP approves acquisition of BASF Pakistan by UAE – based Kemyion Chemical

ISLAMABAD: The Competition Commission of Pakistan (CCP) has approved the proposed acquisition of the entire shareholding of BASF Pakistan (Private) Limited by the UAE-based Kemyion Chemical Solutions Trading FZCO following a Phase-I review conducted 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 percent shareholding of BASF Pakistan (Private) Limited from BASF SE, Germany, pursuant to a Share Purchase Agreement dated November 18, 2025. Following a competition assessment, the Commission authorized the transaction under Section 31(1)(d)(i) of the Act.
Kemyion Chemical Solutions Trading FZCO is a UAE-based company authorized 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 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 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 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 completion of the transaction.
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 authorized the transaction under the Competition Act, 2010.
The approval reflects CCP’s continued commitment to facilitating investment and efficient market transactions through timely merger reviews while ensuring that competition, market efficiency, and consumer welfare remain protected.